Petrol and diesel prices today, 11 July: Fuel rates in Delhi, Mumbai, Bengaluru, Kolkata as crude price softens

Petrol and diesel prices today, 11 July: Fuel prices in India stood steady on Saturday despite softening of oil prices from earlier weekly peaks. This retreat on Friday was driven by resumption of diplomatic talks between the United States and Iran. The flare-up in fighting seems subdued as the two sides are continuing technical discussions to find a solution.

With negotiations in progress, the June agreement to halt military action was “over,” US President Donald Trump said. The recent escalation in hostilities deterred tanker traffic through the Strait of Hormuz and as a result upended global energy trade. As the Persian Gulf waterway remains the point of contention, Washington wants public statement from Tehran declaring that the ship traffic through the Hormuz chokepoint has been fully restored, AP reported. According to Tehran’s semi-official Tasnim news agency, a Qatari delegation arrived in Iran for next round of discussions.

The price of Brent crude, the international benchmark fell 0.41% and settled at $75.99 per barrel, Reuters reported.

According to ship-tracking data, traffic in Hormuz remained thin on Friday after appearing to come to a near halt on 9 July. Energy specialist at TP ICAP Group Plc Scott Shelton said, “Overall, the price action is consistent with the narrative that the market doesn’t think the hostilities are going to last,” Bloomberg reported. He added, “On the flip side, oil flows out of the Strait of Hormuz are down significantly from last week while there are signs that China may be increasing runs.”

Moving to city-specific petrol and diesel prices on 11 July, we observe that fuel rates remain unchanged and largely correspond to effective prices brought about by latest revision that occurred on 25 May. Since state-run OMCs determine retail fuel prices in India, domestic petrol and diesel prices remain stable even at the face of global fluctuation in crude prices.

Centre defends ethanol blending push

Amid row over ethanol blending and its impact on vehicles, the Ministry of Petroleum and Natural Gas issued an official clarification defending India’s ethanol blending programme. Rejecting claims that the country moved too quickly compared to nations like Brazil, the government emphasized that the country’s transition towards ethanol-blended petrol has been a gradual, carefully planned process spanning more than two decades.

According to the Petroleum Ministry, ethanol blending pilot programme was launched in 2001 which implies that biofuel initiatives in India predate the present government. The biofuel project was formally announced in 2004, and E5 (5 per cent ethanol blending) introduced across several states by 2006.

During the earlier days of the initiative, “ethanol production depended largely on sugarcane, a seasonal crop, with annual production capacity of around 400 crore litres, which was insufficient to meet higher blending targets.” A breakthrough came after the launch of the National Policy on Biofuels in May 2018, which focused on creating an ecosystem for large-scale ethanol production.