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Nayara Energy Hikes Petrol, Diesel Prices Across India By Up To ₹5/litre
Nayara Energy, India's largest private fuel retailer, has increased petrol and diesel prices across its retail outlets in India, marking one of the first price revisions for regular petrol and diesel by a private fuel retailer in recent months.
The price hike, ₹5 for petrol and ₹3 for diesel, has been implemented across the nation, though the actual hike will also vary due to local taxes like VAT. At Nayara's fuel stations in Bengaluru, petrol is retailing at ₹108.81 per litre, while diesel is priced at ₹93.95 per litre.
The revision of both petrol and diesel prices comes amid rising global crude oil prices linked to ongoing geopolitical tensions. Crude oil prices have surged by nearly 50% since Israel and the US started the war with Iran on February 28th.
The increase in prices of petrol and diesel by Nayara Energy follows a period of relative price stability in the domestic fuel market. Public-sector oil marketing companies have not revised retail fuel prices for an extended period, even as international crude benchmarks have risen.
Private players such as Nayara Energy, which operates 6,967 fuel stations in India and Reliance-BP have historically adjusted prices more dynamically, reflecting changes in global crude and product costs as unlike public fuel retailers, they receive no government compensation to offset losses from holding back price increases.
The latest revision in pricing from Nayara Energy, which is majority owned by Russian state-controlled Rosneft, comes against the backdrop of rising crude oil prices driven by the war in West Asia between Iran and the Israel-US alliance. Supply concerns due to the blocking of the Strait of Hormuz and market uncertainty have led to upward pressure on fuel prices globally, which is now beginning to reflect in domestic retail pricing by private operators.
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Fuel pricing in India remains influenced by a combination of global crude prices, refining costs, taxes and dealer margins. While public sector companies often hold prices steady for longer periods, private retailers tend to align pump prices more closely with international trends. However, Nayara Energy's decision to hike petrol and diesel prices looks more like a sign of things to come if the war continues for a long period of time, as it could force even public-sector-owned fuel suppliers to raise prices of regular petrol and diesel similar to how they recently hiked prices of premium petrol.
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