Petrol, diesel prices today: Did Strait of Hormuz closure impact fuel rates in Bengaluru, Delhi, Mumbai, Kolkata?

Petrol, Diesel Prices Today: Impact of Strait of Hormuz Closure on Four Major Cities

Theindiapostdaily.com – On Sunday, June 20, fuel prices in India remained stable despite a slight rise in global Brent crude oil prices to around $80 per barrel, following renewed tensions in Lebanon. The market saw a notable 8% drop in prices this week after the Strait of Hormuz reopened, but traffic through the critical waterway slowed on Friday due to clashes between Israeli forces and Iran-backed Hezbollah militants in the region.

Although the Strait of Hormuz was closed again on Saturday, petrol and diesel rates in Bengaluru, Delhi, Mumbai, and Kolkata aligned with the latest adjustments implemented on May 25. State-owned oil marketing companies (OMCs) recently passed on the effects of fluctuating international oil prices to consumers, increasing retail prices by approximately ₹7.50 per litre to offset significant under-recoveries.

Recent Price Adjustments in Major Cities

As of June 21, petrol and diesel prices across the four cities reflected the recent retail revisions. The first price hike of ₹3 per litre occurred on May 15, marking the first increase in over four years. Subsequent adjustments in the following 10 days added to the cumulative rise, though the overall impact remained subdued compared to previous periods of market instability.

Minister Hardeep Singh Puri on Fuel Price Trends

During a press conference in Sonbhadra on Saturday, Union Petroleum and Natural Gas Minister Hardeep Singh Puri highlighted the limited increase in domestic fuel prices despite global volatility. “In real terms, there has been no significant rise in petrol and diesel prices in India,” he stated, according to PTI reports.

“With 193 UN member states, only Japan experienced a smaller price increase than India for petroleum products,” Puri added, emphasizing the government’s efforts to shield consumers from inflationary pressures. He noted that the current price surge is modest, at ₹7.60 per litre, compared to the sharp hikes during the Russia-Ukraine conflict in 2022.

Puri also addressed the recent blockade of the Strait of Hormuz, stating that the government had ensured losses incurred by oil marketing companies—estimated at ₹1,000 crore daily—did not directly affect consumers. He pointed out that companies still hold crude oil stocks purchased at higher prices, suggesting a potential rate cut once cheaper supplies become available.

Iran Closes Strait of Hormuz Amid Regional Conflicts

Iran reactivated the blockade of the Strait of Hormuz on Saturday following Israeli strikes in Lebanon. The country claimed the closure was a response to a “breach of contract” by the U.S. and “the Zionist regime’s violation of the ceasefire in southern Lebanon.” Meanwhile, Iranian officials are in Switzerland for peace talks, while U.S. Vice President JD Vance, Pakistani Prime Minister Shehbaz Sharif, and military chief Asim Munir are also engaged in diplomatic efforts.

US Central Command confirmed the safe passage of 55 merchant vessels through the strait on Saturday, transporting over 17 million barrels of oil to international markets. This development underscores the ongoing efforts to maintain global energy flow despite the geopolitical disruptions.