Brent jumps to $90 as fuel prices set to rise

Brent crude rose to $90 a barrel on July 20 after developments in the Hormuz Strait, and officials said sector participants expect domestic fuel prices to increase. Data showed the move tightened the market for crude, prompting distributors to flag higher wholesale costs.

Hormuz Strait disruption

Officials said the immediate trigger was heightened risk to shipments through the Hormuz Strait, which pushed benchmark Brent above the $90 level. Distributors told officials they were preparing to seek higher pump prices to reflect the jump in crude costs.

Retail impact will depend on how quickly wholesale adjustments feed through, officials said: refiners and wholesalers typically reprice fuel within days when crude moves sharply; retailers then adjust pump prices to protect margins. Households should expect higher at-the-pump costs in the near term if distributors follow through.

Policy and market channels are the mechanism: higher Brent raises refiners' feedstock costs and tightens gasoline and diesel supplies, creating an incentive for price passes along the distribution chain. Officials said the sector was monitoring shipping routes and refining margins for signs of further pressure.

Officials said retailers aimed to implement new pump prices within 24 hours, making July 21 the likely window for visible changes at stations.