Global crude oil prices witnessed a sharp decline of over 5%, falling to levels below $99 per barrel as reports emerged that Iran had agreed in principle to reopen the Strait of Hormuz and dispose of its stockpile of highly enriched uranium under a developing agreement with the United States. According to stock market expert Sunil Shah, this development represents a significant shift from the previous conflict-driven price surge. Shah told ANI that India will emerge as the primary beneficiary of a sharp correction in global crude oil prices, as the country relies heavily on energy imports and will benefit from low energy prices helping the economy grow at forecast levels. The positive market sentiment was reflected in the domestic market starting on a bullish note on Monday, with Shah noting that the market opened and started the week on a positive note following expectations that the West Asia crisis would be diffused.
Despite sharp increases in petrol, diesel and CNG rates amid the ongoing US-Iran conflict and global crude oil volatility, domestic LPG cylinder prices have remained unchanged across major Indian cities. According to the latest rates issued by oil marketing companies on Monday, the price of a 14.2-kg domestic LPG cylinder continues to remain stable in key cities despite growing pressure on global energy markets. The decision provides temporary relief to millions of households as transportation and fuel costs are already climbing. Current domestic LPG prices stand at Delhi: ₹913, Mumbai: ₹912.50, Kolkata: ₹939, Chennai: ₹928.50, with the government's decision aimed at limiting household inflation amid oil volatility.
Congress leader Rahul Gandhi launched a scathing attack on Prime Minister Narendra Modi over the latest fuel price increases, calling the situation 'mehangai manav' Modi. According to reports from Business Standard, Gandhi stated that Modi raises petrol and diesel prices in installments to ensure consumers' pockets are quietly picked bit by bit. The Leader of Opposition in the Lok Sabha warned that this upward trend will only continue, criticizing Modi for making promises during elections and attacking people's pockets at other times. However, Shah believes the recent fuel hikes were on expected lines, stating that if the international crude oil price is corrected, then we will not need any further hike.
Petrol and diesel prices were raised by ₹2.61-2.71 per litre on Monday, marking the fourth increase in less than two weeks as state-owned fuel retailers continued to pass on rising international oil prices to consumers. As reported by The Times of India, this brings the cumulative increase since fuel price revisions resumed on May 15 to nearly ₹7.5 per litre, with prices now reaching their highest levels since May 2022. The latest revision follows three previous hikes of around ₹3 per litre each on May 15, May 19, and May 23, 2026, after fuel prices had largely remained unchanged since April 2022. In Delhi specifically, petrol prices moved from around ₹94-95/litre to above ₹100/litre within less than two weeks, highlighting the unprecedented speed of these price revisions.
According to Shah's analysis, the retreat in crude prices directly impacts the country's economy as India relies heavily on energy imports. He emphasized that low energy prices will help our economy in a huge way that will boost consumption, allowing the country to avoid dealing with high inflation and maintain economic growth forecasts. Shah noted that the reference point is crude oil prices for this market, and as crude oil prices go down further, markets will improve significantly. Regarding external capital flows, Shah highlighted that the domestic market experienced recent outflows from foreign portfolio investors due to the AI theme not being a pure play in India, with capital moving to Southeast Asian countries where AI companies exist. However, Shah believes once the valuations become very attractive, the capital will come back.
While households have been spared another immediate increase, commercial LPG prices continue to remain elevated with the price of 19-kg commercial LPG cylinders having risen by more than ₹900 last month and largely staying at those higher levels. Current commercial LPG prices across major cities are Delhi: ₹3,071.50, Mumbai: ₹3,024.00, Kolkata: ₹3,202.00, Chennai: ₹3,237.00. The higher commercial LPG rates continue to impact restaurants, food businesses and small commercial establishments that rely heavily on bulk cooking gas supplies, with LPG rates continuing to vary across cities due to transportation costs, local taxes and distribution expenses.
