Petrol, diesel prices today — 20 July: Fuel rates in Delhi, Mumbai, Bengaluru, Kolkata amid tightening oil market

Petrol and diesel prices today, 19 July: Retail fuel rates in India held steady on Monday despite elevated energy prices due to renewed hostilities between the United States and Iran. The benchmark Brent crude surged last week amid geopolitical tension in West Asia, erasing a roughly 30% decline in the second quarter.

The US-Iran war, now in its fifth month, is again driving up energy prices and intensifying volatility which may give way to hawkish Federal policy. Even though soft US economic data suggested that a rate hike isn’t likely in the near term but recent escalation in hostilities has raised concerns that the Fed may eventually tighten monetary policy.

Notably, state-run Oil Marketing Companies (OMCs) determine retail fuel prices in India. Despite marked fluctuation in global energy prices, fuel prices in India continue to align with the last major price revision that came about on 25 May.

Check latest petrol and diesel price in your city on 20 July

Brent crude price today

Brent crude rose to the highest level since mid-June, climbing almost 4% to trade above $90 a barrel, Bloomberg reported.

US-Iran war latest update

As tit-for-tat strikes expanded beyond strictly military targets, include bridges, utilities and port facilities, Iran announced collapse of ceasefire between the US and Iran and on Saturday said it would no longer adhere to the terms of the interim peace deal. This escalation not only brought oil cargo movement through the Strait of Hormuz to a halt but also increases the possibility of deepening disruptions to crucial energy flows through the narrow waterway.

Injecting fresh risk into the market and signaling a possible US escalation in strikes, the US increased military presence in West Asia by sending more warplanes, the New York Times reported. The aircrafts included F-16 fighter jets and F-35 jets, besides additional aerial refueling plane. Iranian Foreign Minister Abbas Araghchi on Sunday said that certain demands related to the country’s nuclear efforts may remain “unresolvable.”

US forces struck Iran for a ninth consecutive day early Monday and explosions were heard in several Iranian cities, including Tabriz, Chabahar, Konarak, Bandar Mahshahr and Bandar Imam Khomeini, Iran's semi-official Tasnim news agency reported. In the renewed fighting, the death toll of American military service rose to three. On the a new wave of strikes on Iran, the US President Donald Trump said, “We hit it very hard again tonight, and we did that in honor” of the personnel killed, Bloomberg reported.

Experts point to tightening oil market

Group AG commodity analyst, Giovanni Staunovo, said, “The oil market is again tightening, which is likely to keep oil prices supported." He added, “Repeated strikes on vessels crossing the Strait of Hormuz have resulted in a drop in tankers exiting the Gulf” and “energy infrastructure attacks are something which is likely to keep oil market participants concerned.”