Oil prices remained volatile as traders assessed President Trump's latest remarks on potential military action against Iran. Brent crude slipped below $111 per barrel after falling 0.7% on Tuesday, while West Texas Intermediate hovered near $104 per barrel. According to reports, Trump stated that if Tehran did not agree to US peace terms, "we may have to give them another big hit," representing a sharp shift from his previous statement about calling off an attack. The President predicted that oil prices would plummet if hostilities ended quickly.
Fuel prices remained unchanged on May 20 after oil marketing companies raised petrol and diesel prices for the second time within a week amid rising global crude oil prices and ongoing geopolitical tensions. Hyderabad recorded the highest petrol price at ₹111.84 per litre, followed closely by Thiruvananthapuram at ₹111.70 per litre. Other major cities showed significant increases including Kolkata at ₹109.70 per litre, Mumbai at ₹107.59 per litre, and New Delhi at ₹98.64 per litre. The price variations reflect regional differences in taxation and local market conditions, with Chandigarh recording the lowest rate at ₹98.10 per litre.
Diesel prices also held firm across the country after recent hikes, with Thiruvananthapuram recording the highest rate at ₹100.59 per litre and Hyderabad following closely at ₹99.95 per litre. Patna and Kolkata both reached ₹96.07 and ₹94.08 per litre respectively. The price increases were uniform across most cities, with New Delhi and Gurgaon showing the lowest rates at ₹91.58 and ₹92.01 per litre respectively. These increases directly impact daily commuting and transportation costs for consumers.
Multiple factors are contributing to the latest fuel price surge, including rising global crude oil prices amid Middle East tensions, supply disruptions linked to the Strait of Hormuz crisis, weakening rupee against the US dollar, and higher import costs for crude oil. Oil marketing companies are reportedly facing mounting daily losses due to elevated crude prices, while India, which imports nearly 85-90% of its crude oil requirement, remains highly vulnerable to international price fluctuations. Market experts warn that if crude oil prices continue to remain elevated due to geopolitical tensions, fuel prices in India may remain under pressure in the coming weeks.
