India's Oil Market Resists Global Price Hike Amid Hormuz Tensions

India's oil market has been experiencing turmoil due to rising Brent crude prices caused by tensions in the West Asia region, specifically at the Strait of Hormuz. Despite this volatility, petrol and diesel prices in major cities remained unchanged on August 7.

The price of Brent crude had risen to $83.45 a barrel as concerns over shipping security around the critical oil transit route grew. The uncertainty surrounding the situation has kept oil prices under pressure, but domestic fuel rates have stayed stable since their last significant change.

India's oil companies set their product prices based on various factors, and despite global crude price fluctuations, petrol and diesel rates in India have not been revised recently. This stability is a result of the Centre's ethanol blending programme, which continues to operate according to domestic policies and procurement guidelines.