Fuel prices remained unchanged on July 3 following a government notification issued on June 30 that maintained June rates throughout July. According to the notification from the Energy and Mineral Resources Division, the existing retail prices will continue to be effective from July 1, with the decision approved by the competent authority. This decision comes despite significant geopolitical developments that had previously driven substantial increases, with the four-month US-Iran war that threatened to resume over the weekend now showing potential signs of resolution. The government's decision to hold rates reflects this strategic approach to market management, with the easing in oil prices providing positive support for inflation outlook.
As reported by NDTV Profit, petrol prices across major Indian cities on July 3 show significant variation due to local tax structures. Delhi leads with petrol priced at ₹102.12 per litre, while Hyderabad commands the highest at ₹115.73 per litre. Diesel prices range from ₹95.20 per litre in Delhi to ₹103.82 per litre in Hyderabad. The price differential reflects varying state-level taxes and excise duties across different regions, with the government maintaining uniform pricing across all fuel categories for July. Petrol prices on July 3: Delhi (₹102.12), Kolkata (₹113.51), Mumbai (₹111.21), Chennai (₹108.01), Hyderabad (₹115.73), Bengaluru (₹110.89). Diesel prices on July 3: Delhi (₹95.20), Kolkata (₹99.82), Mumbai (₹97.83), Chennai (₹99.66), Hyderabad (₹103.82), Bengaluru (₹98.80).
Crude oil futures have slipped to ₹6,686 per barrel amid weak global market conditions, according to Deccan Herald reports. The earlier surge had placed significant financial strain on state-run oil marketing companies (OMCs), which continued selling fuel at relatively stable retail prices despite rising input costs. This decline in crude oil prices provides additional support for the government's decision to maintain fuel rates, as it reduces the burden on OMCs while keeping retail prices stable for consumers. The easing in oil prices is particularly beneficial for Pakistan, a major fuel importer that is highly exposed to global oil price swings. Oil prices edged lower on Friday as crude flows through the Strait of Hormuz continued to recover, easing concerns over supply disruptions while investors looked at ongoing negotiations between the US and Iran aimed at securing a longer-term peace agreement.
According to Insight Securities report, Pakistan's inflation is expected to rise to 11.2 percent year-on-year in June, compared with 3.2 percent in the same period last year and 11.7 percent in May. The brokerage said oil prices have retreated sharply following the partial reopening of the Strait of Hormuz and the signing of a US-Iran memorandum of understanding this month. While the risk of conflict has not completely dissipated, ongoing military exchanges suggest that the likelihood of prolonged escalation has subsided to a large extent. The easing in oil prices is positive for Pakistan's inflation outlook, particularly as the impact of last year's low base begins to fade from August.
According to Insight Securities report, Pakistan's inflation is expected to rise to 11.2 percent year-on-year in June, compared with 3.2 percent in the same period last year and 11.7 percent in May. The year-on-year increase was mainly driven by a low base effect and higher food and housing indices. On a month-on-month basis, inflation is expected to decline by 0.2 percent, mainly due to lower fuel prices and reduced electricity charges, despite higher fuel cost adjustments. The report said food prices were likely to rise 0.5 percent during the month because of elevated prices of perishable items. Within the weekly Sensitive Price Indicator basket, tomatoes, potatoes and onions recorded significant price increases, while chicken, fresh vegetables, motor fuel, eggs and pulse moong became cheaper during the month. Insight Securities projected average inflation for fiscal year 2025-26 at around 7.0 percent, compared with 4.6 percent in the previous fiscal year.
