Nayara Energy has raised petrol prices by Rs 5 per litre and diesel prices by Rs 3, bringing a price shock ahead of the festive season. The revised rates took effect from Saturday across the company’s 7,108 fuel stations. The increase comes as crude oil and refined product prices remain elevated, squeezing fuel retailers’ margins. The company is seeking to narrow the gap between domestic pump prices and its rising costs.
Nayara is India’s largest private fuel retailer and had earlier reduced prices in July after crude prices eased. The increase marks another reversal as global energy markets face renewed pressure from geopolitical tensions and disruptions in West Asia. The company had also raised petrol and diesel prices by Rs 5 and Rs 3 respectively in March.
State-owned Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have largely kept retail petrol and diesel prices unchanged, maintaining a difference between their outlets and Nayara pumps. Public-sector companies account for more than 90 per cent of India’s fuel stations, limiting the nationwide impact of Nayara’s revision.
The government directed private fuel retailers not to restrict petrol and diesel sales at their outlets amid supply concerns and losses caused by the widening gap between retail and bulk prices. Industry estimates indicate that oil marketing companies are facing marketing losses as crude prices remain high while retail rates have stayed stable.
With crude oil prices hovering around elevated levels, the Nayara hike could increase transport and operating costs for consumers and businesses.
