Crude Oil Drops to $80, Yet Petrol & Diesel Prices in India Stay High — What’s Going On?

As soon as the news of the US and Iran reaching a consensus on a peace agreement to end the conflict in the Middle East and the reopening of the Strait of Hormuz emerged, the crude oil prices started dropping. Now, as we are in the middle of June 2026, the West Texas Intermediate (WTI) crude oil has plunged to approximately $80 per barrel. On the other hand, Brent Crude prices declined nearly 4% to approximately $83.82 per barrel.

The renewed confidence in global energy supplies owing to the agreement, which is yet to be signed, has ignited hopes of lower fuel prices globally, including in India, the third largest oil importer worldwide. Most of its crude oil and LPG imports come through the Strait of Hormuz. The easing of tensions and reopening of this shipping route will likely improve supply and curb Indias import costs.

As a matter of fact, Oil Marketing Companies (OMCs), taking cues from global crude oil price surges, have been consistently raising the prices of petrol, diesel and LPG over recent months.

But crude oil prices have largely been declining since mid-May after touching the war-induced high of around $120 per barrel. Despite this, why are petrol and diesel prices in India climbing high with no stop to it? While the common man is reeling under high prices, the OMCs have their own reason to keep prices elevated. So, whats the fuss? This article will reveal all that and more. Keep reading!