Petrol, diesel prices today: Fuel rates in Delhi, Mumbai as crude oil extends gain amid bleak outlook on US-Iran deal

Petrol and diesel prices today, 11 August: Petrol and diesel prices in major cities remained largely unchanged on Tuesday. Fuel rates set by state-run Oil Marketing Companies (OMCs) remain steady across major cities like Delhi, Mumbai, Gurugram and Chandigarh despite fluctuations in global crude oil.

Retail petrol and diesel prices continue to align with the last major price revision that came about over two months ago, on 25 May. State-run fuel retailers continue to insulate consumers from market fluctuations and volatility in oil prices. Fuel rates update daily at 6:00 AM under dynamic pricing but remain unchanged at major metros.

Check latest petrol and diesel price in your city on 11 August

Crude oil price today

Crude oil extended gains amid fading hopes for a deal to reopen the Strait of Hormuz after US President Donald Trump demanded compensation for damage the US has incurred in the war with Iran. Brent crude, the global benchmark, traded around $87.81 a barrel at 0013 GMT on Tuesday after gaining about 10% over the previous four sessions. Meanwhile US West Texas Intermediate crude futures stood at $82.20 a barrel.

Amid added fresh uncertainty and bleak outlook on peace deal, Saudi Aramco postponed the restart of its 400,000-barrel-per-day Jazan refinery. The reopening date has now been set for 30 August after the Houthis claimed two attacks on the plant on Sunday.

According to analysts at Barclays, crude oil and refined product net exports through the Strait of Hormuz averaged 3 million barrels per day in the week ending 7. This figure points to a significant drop from 4.4 million bpd in the previous week.

KCM Trade chief market ‌analyst Tim Waterer said, "There appears to be a gulf, no pun intended, between the US and Iran over what any agreement would actually look like," adding, “As a result, some of the optimism that built up last week is being unwound, giving oil prices a decidedly bid tone,” Bloomberg reported.

Trump presses new demands

Oil prices hit their highest since July 31 after rising more than 5% on Monday. This steep jump in oil prices was seen after Trump responded to Iran's conditions for a peace deal. Complicating efforts to reopen Hormuz, Trump put forth his own demands that Iran pay compensation for people killed in wars, attacks and protests. Later, Trump asserted that Washington had control of the strait and had swept the strategic oil waterway for Iranian mines.

"The chokehold risk around both the Strait of Hormuz and the Bab el-Mandeb remains highly significant. Even intermittent restrictions or the threat of further incidents keep insurance costs elevated and force longer shipping routes ... hence energy flows look likely to stay constrained near term," Bloomberg quoted Tim Waterer as saying.

Experts raise concerns over ethanol-blended fuel

On Monday, a group of experts comprising Delhi Science Forum scientist and activist D Raghunandan, Ministry of Agriculture and the Ministry of Food Processing former secretary Siraj Hussain and former NITI Aayog member Ramesh Chand raised concerns over ethanol-blended fuel. According to experts, ethanol-blended fuel policy could severely impact land-use and agriculture patterns, food security, groundwater levels and household incomes, PTI reported.

The experts emphasized that the government should decrease ethanol-blended fuel prices to compensate consumers for a drop in efficiency and expenditures incurred due to wear and tear of vehicle components.