Petrol and diesel prices remained unchanged across major Indian cities on Wednesday, August 12, while global crude oil prices continued to stay elevated amid uncertainty surrounding the reopening of the Strait of Hormuz.
Brent crude moved closer to the $90-per-barrel mark, trading 0.57% higher at $89.47 per barrel at the time of the report. On Tuesday, Brent crude gained 1.36% to settle at $88.91 per barrel, while US West Texas Intermediate (WTI) futures rose 1.3% to close at $83.20 per barrel. Oil prices have climbed more than 6% so far this week as hopes of increased shipping traffic through the crucial Strait of Hormuz faded.
As of August 12, petrol was priced at Rs 102.12 per litre in Delhi, while diesel cost Rs 95.20 per litre. Hyderabad continued to record the highest petrol price among the major cities listed, while fuel rates also varied considerably due to local taxes and other state-level charges.
City Petrol Price (per litre) Diesel Price (per litre)
Delhi Rs 102.12 Rs 95.20
Kolkata Rs 113.43 Rs 99.78
Mumbai Rs 111.12 Rs 97.78
Chennai Rs 107.75 Rs 99.57
Hyderabad Rs 115.69 Rs 103.82
Bengaluru Rs 110.93 Rs 98.79
Apart from international crude prices, petrol and diesel rates in India are influenced by central and state taxes, refining margins, freight and distribution costs, and fluctuations in the rupee against the US dollar.
The latest developments around the strategic waterway have kept global oil markets on edge. According to Reuters, Mohsen Rezaei, Secretary of Iran's Supreme National Security Council, said the Strait of Hormuz would not reopen unless Washington met Tehran's conditions, including the unfreezing of Iranian funds held overseas.
Meanwhile, Pakistan Defence Minister Khawaja Asif told Bloomberg News that “things are shaping up again in favour of a peace arrangement or a deal”. The comments come as markets continue to assess mixed signals over the possibility of a fresh US-Iran agreement.
The situation is particularly significant for India, which imports more than 85% of its crude oil requirements. A prolonged rise in international crude prices could increase India's oil import bill, put pressure on inflation and potentially raise the chances of future revisions in domestic fuel prices.
