Nayara Energy, India’s largest private fuel retailer, raises petrol prices by ₹5 per litre and diesel by ₹3 on Thursday, passing on rising input costs driven by global oil price spikes linked to the West Asia conflict.
The price hike comes as fuel retailers face mounting pressure from a sharp rise in international crude oil prices. Global benchmarks surged nearly 50% since late February following military strikes involving the United States, Israel, and Iran, disrupting supply expectations.
Two sources with direct knowledge of the matter say Nayara decided to pass on part of the increased costs to consumers after absorbing losses for weeks. The company operates 6,967 petrol pumps out of India’s total 102,075 outlets.
A spokesperson for Nayara Energy does not immediately respond to requests for comment.
Global Oil Surge Pressures Private Fuel Retailers
International oil prices recently touched $119 per barrel amid escalating tensions in West Asia before easing to around $100 per barrel. The volatility has strained fuel retailers, especially those without government support.
“Private fuel retailers in India receive no government compensation to offset losses,” one source says, adding that continued price freezes have become unsustainable for such companies.
India imports about 88% of its crude oil requirements, making domestic fuel pricing highly sensitive to global market movements. Disruptions in key supply routes have further intensified cost pressures.
Nayara Passes Costs to Consumers as Losses Mount
Nayara Energy’s price increase varies across states due to differences in local taxes, such as value-added tax. In some regions, petrol prices rise by as much as ₹5.30 per litre.
The move follows a prolonged freeze on retail fuel prices since April 2022, during which companies absorbed losses when crude prices rose. Sources say the financial burden left private retailers with limited options.
Meanwhile, Jio-bp, which operates 2,185 outlets, has not yet raised prices despite facing similar cost pressures.
Fuel pricing remains officially deregulated, allowing companies to adjust rates based on market conditions. However, competitive and political considerations often influence timing.
State Retailers Hold Prices Despite Market Strain
State-owned companies, including Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd, continue to hold prices steady, controlling about 90% of the market.
These Nayara Energy firms recently raised the prices of premium petrol by ₹2 per litre and increased bulk diesel rates for industrial users by about ₹22 per litre, but left regular fuel prices unchanged.
In Delhi, premium petrol now costs ₹101.89 per litre, while bulk diesel prices rise sharply. Regular petrol and diesel prices remain at ₹94.77 and ₹87.67 per litre, respectively.
Government officials maintain that fuel prices are market-driven and determined independently by oil marketing companies.
Analysts say sustained high crude prices could eventually force broader price revisions across the sector if geopolitical tensions persist.
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