Global oil benchmarks rose on Wednesday amid ongoing fears of prolonged disruption at the Strait of Hormuz, which could impact Indian fuel prices and inflation, as Iran’s stance heightens geopolitical uncertainty.
Oil prices moved higher on Wednesday as traders continued to weigh the risk that the Strait of Hormuz could stay constrained, keeping a firm floor under global benchmarks and raising the prospect of pressure on Indian fuel costs. Brent crude was last up 0.57% at $89.47 a barrel, after rising 1.36% on Tuesday to $88.91, while US West Texas Intermediate climbed 1.3% to $83.20, according to market data cited by NDTV Profit.
The latest jump follows remarks attributed to Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, who said the waterway would not fully reopen until Washington met Tehran’s conditions. Reuters reported that Rezaei tied any reopening to the unfreezing of Iranian funds held overseas, adding to uncertainty around a route that is critical to global energy flows. At the same time, Pakistan’s defence minister, Khawaja Asif, told Bloomberg News that conditions were improving for a possible peace arrangement, leaving markets to balance hopes of diplomacy against the risk of renewed disruption.
For India, which imports more than 85% of its crude oil needs, sustained strength in global oil prices can widen the import bill and feed inflation. Higher crude costs can also make fresh retail fuel revisions more likely, even though pump prices are shaped not only by international benchmarks but also by central and state taxes, refining margins, freight, distribution costs and the rupee’s value against the dollar.
Against that backdrop, petrol and diesel prices were unchanged on August 12 in key cities. Petrol stood at ₹102.12 a litre in Delhi, ₹113.43 in Kolkata, ₹111.12 in Mumbai, ₹107.75 in Chennai, ₹115.69 in Hyderabad and ₹110.93 in Bengaluru. Diesel was priced at ₹95.20 a litre in Delhi, ₹99.78 in Kolkata, ₹97.78 in Mumbai, ₹99.57 in Chennai, ₹103.82 in Hyderabad and ₹98.79 in Bengaluru.
That stability comes after a period in which Indian fuel prices had also been shaped by policy changes and market pressures. Previous reports noted that excise duty cuts by the Centre in May 2022 reduced retail prices, while later state-level tax changes, including in Punjab, pushed prices up in some markets. Separately, oil marketing companies have faced losses when crude and product costs outpaced retail prices, underscoring how quickly a rise in international oil can ripple through the domestic market.
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