Delhi: India’s largest private fuel retailer, Nayara Energy, hiked the price of petrol by ₹5 per liter and diesel by ₹3 per liter on Thursday. Sources indicated that a portion of the recent global surge in oil prices—triggered by the conflict in the Middle East—is now being passed on to consumers.
Fuel marketing companies in India are under pressure, as retail prices for petrol and diesel have remained static despite an approximately 50 percent rise in international oil prices since February 28. On February 28, the US and Israel launched military strikes against Iran, prompting a significant retaliatory response from Tehran.
Nayara Energy, which operates 6,967 of India’s 102,075 petrol pumps, has decided to pass on a portion of its increased input costs to customers. However, a company spokesperson did not immediately offer any comment regarding this development.
Jio-BP—the fuel retailing joint venture between Reliance Industries and BP PLC, which operates 2,185 petrol pumps—has not yet raised prices, despite incurring heavy losses on the sale of petrol and diesel.
State-owned fuel retailers, who control approximately 90 percent of the market, have kept their rates frozen. Sources noted that Nayara—a company majority-owned by Russia’s Rosneft—has raised petrol prices by ₹5 per liter and diesel prices by ₹3 per liter; however, the actual effective price hike varies across states depending on the impact of local taxes, such as VAT.
In some regions, the price hike for petrol reaches as high as ₹5.30 per liter. Sources stated, “Private fuel retailers in India receive no government compensation to offset losses incurred by being restrained from raising prices, whereas state-owned companies receive support for acting as ‘good corporate citizens.'” He further stated that, due to mounting losses, they have been left with no alternative but to raise retail prices. Retail petrol and diesel prices have remained unchanged since April 2022, during which state-owned entities—Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—incur losses when crude oil prices are high and earn profits when rates are low.
Last week, the three retailers hiked the price of premium, or higher-grade, petrol by ₹2 per liter, and the price of bulk diesel sold to industrial users by approximately ₹22 per liter.
