Petrol, diesel prices today — 19 June: How costly is fuel in Bengaluru, Delhi, Mumbai, Kolkata, Hyderabad, other cities?

Petrol and diesel prices today: Fuel prices stood stead on Friday, 19 June, despite fluctuation in brent crude price after US-Iran peace deal. The price of petrol and diesel was in line with the latest price revision that came about on 25 May. Last month, state-run oil marketing companies (OMCs) made retail adjustments to transfer some of the burden of volatile global oil prices to consumers. They implemented a cumulative increase of about ₹7.50 per litre in petrol prices in the wake of severe under-recoveries.

The first hike of ₹3 took place on 15 May, the first increase in over four years, which was followed by three more revisions in the subsequent 10 days. The disruption in energy supply chain due to blockade across the Strait of Hormuz was the primary cause of the volatility in oil prices. The government shielded the consumers against inflationary pressure for the first 78 days of the war before passing on part of the price shock.

Brent crude oil prices spiked again on Thursday after dropping to their lowest level since the war began on 28 February. The increase came after US Vice President JD Vance warned Israel against further attacks in Lebanon on Iran-backed Hezbollah. These geopolitical tensions created doubts over the durability of the agreement as Israel continued to pound Lebanon.

Brent crude futures climbed 30 cents, or 0.38% and settled at $79.85 a barrel after sliding as low as $76.54 earlier in the session, Reuters reported.

“The vice president’s statements about Israel may have put things back on edge,” Reuters quoted Again Capital partner John Kilduff as saying. He added, “I think the slightest sort of disturbance is going to register in the market.”

Strait of Hormuz reopens as US-Iran lift blockade

Oil tankers sailed through the Strait of Hormuz and the United States said it lifted its blockade on Iran on Thursday as an interim deal to end the war took effect, though key issues are still unresolved between the two countries

After the interim deal between the United States and Iran to end the West Asia war took effect, a downward pressure on oil prices was noticed as oil tankers sailed through the Strait of Hormuz, marking a resumption of long restricted energy flows.

However, the cost of oil continues to be much higher than before the war even though US lifted its blockade. Overall, easing of crude oil costs depends on what happens in the Strait of Hormuz, through which one-fifth of the world’s oil flowed before the war. According to the interim 14-point agreement, Iran will allow toll-free passage through the Strait as the deal calls for restoration of traffic to its full capacity within 30 days.

Over gradual recovery in flows through the Strait, John Kilduff said, “Full resumption of oil flows through the strait has been priced back in,” adding, “Anything short of that will be a problem.”

The preliminary accord requires the United States and its partners to come up with a $300-billion plan to finance Iran’s recovery and calls for a ceasefire in Lebanon.

While analysts expect a gradual recovery in flows through Hormuz, industry experts seemed skeptical against downslide in oil prices despite recovery of demand and inventories. According to investment bank Goldman Sachs, Gulf exports are expected to normalize to pre-war levels by end-July, while crude production is expected to recover by October.

As per Goldman Sachs, oil flows through Strait currently account to around 70% of pre-war levels but a normalization in exports might be achieved with a 13 million barrel-per-day increase.

On Thursday, the rupee appreciated by 10 paise against the US dollar, to settle at 94.40 amid positive global market sentiment.