Crude Oil Price On May 5: Brent Crude Climbs To $112 As Petrol Price Hike Is On Cards In India

Global oil prices eased on Tuesday after a sharp rally in the previous session, as traders reassessed the likelihood of immediate supply disruptions amid escalating tensions between the United States and Iran.

Despite the pullback, prices remain significantly higher than levels seen earlier this week. On Monday morning, international benchmark Brent crude was trading above $108 per barrel, while U.S. West Texas Intermediate (WTI) hovered near $102. The subsequent surge underscored the market's sensitivity to geopolitical developments in the Strait of Hormuz, a critical artery for global oil shipments.

Crude Oil Price Today

As of Tuesday, Brent crude futures for July delivery slipped to $112.93 per barrel, while WTI futures declined to $103.99. This comes after both benchmarks posted strong gains on Monday, with Brent rising by 6% and WTI climbing 4%, reflecting heightened fears of supply disruptions.

The volatility follows a rapid deterioration in relations between Washington and Tehran. A fragile ceasefire appeared close to collapse after the United Arab Emirates was reportedly targeted by Iranian drones and missiles. In response, U.S. officials stated that American forces had sunk Iranian vessels in the Strait of Hormuz, further fuelling concerns about a broader conflict that could disrupt oil flows.

Across the energy complex, price movements were mixed. Murban crude rose 3.41% to $107.30, while the OPEC basket gained 6.51% to $121.11. Meanwhile, natural gas prices edged lower, with U.S. gas down 0.94% to $2.84. Refined products such as gasoline and heating oil also recorded modest declines, indicating some cooling in downstream demand expectations even as crude benchmarks remain elevated.

What It Means For Indian Consumers

For India, the world's third-largest oil importer, sustained high crude prices are beginning to translate into renewed concerns over domestic fuel costs. While there have been speculations of a fuel price hike in the country, the Centre has repeatedly denied that it is planning to increase the rates of petrol and diesel.

However, a fresh report suggests that a revision may now be under active consideration. According to a report by Moneycontrol citing a senior government official, discussions are underway to allow oil marketing companies (OMCs) to pass on rising input costs to consumers. This signals a possible shift in policy after a prolonged period of price stability.

Global crude prices have remained above the $100 per barrel mark for nearly two months, driven largely by the ongoing conflict in West Asia. This sustained elevation has put considerable financial pressure on state-run OMCs, which have kept retail fuel prices largely unchanged since 2022 despite significant fluctuations in international markets.

Industry estimates suggest that petrol and diesel prices could rise by ₹4-5 per litre if the government allows revisions. Additionally, domestic LPG cylinder prices may increase by ₹40-50. If implemented, this would mark the first upward adjustment in retail fuel prices in nearly four years.

Petrol and Diesel Rates In Indian Cities On May 5

The potential price hike reflects the growing mismatch between global crude costs and fixed domestic fuel rates. While the government has so far shielded consumers from volatility, the current geopolitical environment may limit its ability to do so for much longer.

With tensions in West Asia showing no immediate signs of easing, oil markets are expected to remain volatile in the near term. For Indian consumers, this raises the likelihood that the long-standing freeze on fuel prices could soon give way to a recalibration aligned with global trends.