Petrol and diesel prices today: Fuel rates in Delhi, Mumbai, Bengaluru as crude rose after Saudi shut key oil pipeline

On Monday, September 14, fuel prices in cities across India experienced minor fluctuations but remained consistent with a price adjustment made on May 25. Despite the significant shift in global energy prices, state-run Oil Marketing Companies (OMCs) continue to shield domestic consumers from the volatility of international energy markets.

Fuel rates for petrol and diesel in Delhi, Mumbai, and Bengaluru, as well as other Indian cities, have remained steady for the past three months, mirroring the last substantial price increase when they rose by ₹2.7 to ₹2.8 per litre respectively.

The prices differ across states due to varying state taxes and local levies. Recently, the closure of a key Saudi Arabian oil pipeline due to attacks by Iran-backed Houthi militants exacerbated the global energy crisis. This closure, coupled with escalating hostilities in other vital maritime chokepoints like the Bab el-Mandeb strait, led to a 3.6% increase in Brent crude prices to over $108 a barrel and West Texas Intermediate prices nearing $103.

The oil market analyst at Sparta Commodities SA, June Goh, stated that the impact of the pipeline closure would be limited if oil flows resume quickly. However, a prolonged shutdown might necessitate output cuts as Yanbu, the pipeline's western end, could be tapped for reserves, but a prolonged shutdown could lead to output cuts.

Additionally, a planned meeting between Iran and several Gulf nations to establish a temporary shipping lane through the Persian Gulf, which was supposed to take place on Monday, has been postponed due to tensions between Iran and the West. Iran's vice president for nuclear affairs, Mohammad Eslami, was barred from the United Nations’ nuclear watchdog International Atomic Energy Agency’s general conference in Vienna for the first time in years, further straining relations.