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India Fuel Prices Stay Steady as Brent Gains 7.6% Weekly
Fuel prices in Indian cities did not change on 5 September.
Government-linked oil companies review prices every morning at 6:00 AM.
They have kept prices steady for about three months.
The last major increase was on 25 May.
Petrol and diesel became costlier by about ₹2.7 and ₹2.8 per litre then.
Meanwhile, Brent oil prices rose sharply during the week.
The increase was linked to renewed fighting involving the United States and Iran.
One analyst said the rise was mostly caused by fear rather than an actual supply shortage.
Other analysts warned that prices could rise further if the conflict disrupts energy shipments.
Indian petrol and diesel prices remained unchanged on 5 September.
Delhi petrol cost ₹102.12 per litre and diesel ₹95.20.
Mumbai petrol was ₹111.21, while diesel was ₹97.83 per litre.
Bengaluru petrol cost ₹111.68 and diesel ₹99.56 per litre.
Brent crude gained 7.6% weekly, settling at $92.68 a barrel.
- Who
- State-run Indian Oil Marketing Companies, global oil traders, and officials and analysts discussing the United States-Iran conflict.
- What
- Indian petrol and diesel prices stayed unchanged while Brent crude recorded a 7.6% weekly gain.
- Where
- Fuel prices were reported across Indian cities, while the oil-market concerns centered on West Asia and the Strait of Hormuz.
- When
- 5 September; the prices were reviewed at 6:00 AM, and the oil gain occurred during the preceding week.
- Why
- Indian fuel retailers maintained prices despite global volatility, while renewed conflict concerns increased oil-market risk perceptions.
Conflict Impact Mostly Sentiment-Driven
Disruption Risks Could Push Prices Higher
Current effect on oil supply
Conflict Impact Mostly Sentiment-Driven
Julius Baer economist Norbert Rucker said there was no indication that the escalation had materially affected Middle East exports, describing the rally as mostly driven by mood and fear.
Disruption Risks Could Push Prices Higher
ANZ analysts raised their short-term Brent forecast to $95 a barrel and identified further upside risk if the conflict intensifies.
Characterization of the conflict
Conflict Impact Mostly Sentiment-Driven
US President Donald Trump downplayed the conflict, describing the war in Iran as “small potatoes” and saying the United States was not fighting at that time.
Disruption Risks Could Push Prices Higher
The reported bombing campaign, retaliatory strikes, and threats involving Iran’s Pickaxe Mountain were described as complicating peace talks and shipping through the Strait of Hormuz.
Key facts
- Delhi rates
- Petrol ₹102.12 per litre; diesel ₹95.20 per litre.
- Mumbai rates
- Petrol ₹111.21 per litre; diesel ₹97.83 per litre.
- Bengaluru rates
- Petrol ₹111.68 per litre; diesel ₹99.56 per litre.
- Brent crude
- Rose 7.6% during the week and settled at $92.68 per barrel.
- West Texas Intermediate
- Rose nearly 10% during the week and closed at $91.48 per barrel.
- Last major Indian revision
- On 25 May, petrol and diesel prices increased by ₹2.7 and ₹2.8 per litre, respectively.
- Strait of Hormuz shipping
- Four commodity vessels transited on Thursday, compared with a 10-day average of about 15.
Quotes
Norbert Rucker
Head of economics and next generation research at Julius Baer
“You know, we do intermittent strikes. So I heard what he said, and it was interesting because I think that there’s a lot of truth that we’re not fighting right now.”
livemint.com
“Oil seems to be in a phase where the conflict’s gridlock and recurring hostilities are regularly awakening a risk premium embedded in prices.”
livemint.com
Sources
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