Nayara Energy raises petrol and diesel prices amid global oil surge

Nayara Energy has increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre, becoming the first major fuel retailer in India to pass on part of the recent spike in global crude oil prices to consumers.

The move comes as international oil markets have seen sharp volatility following escalating tensions in the Middle East. Crude prices surged significantly after military strikes involving the United States and Israel triggered retaliatory actions from Iran, putting pressure on fuel retailers worldwide.

Nayara, which operates nearly 7,000 fuel stations across the country, has cited rising input costs as the primary reason for the price hike. The actual increase in retail prices may vary across states depending on local taxes such as VAT, with some regions seeing petrol prices rise by more than ₹5 per litre.

In contrast, other private sector players, including Jio-bp, have so far refrained from revising prices despite reportedly incurring losses on fuel sales.

State-owned oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — which together dominate around 90 per cent of the retail market, have continued to hold petrol and diesel prices steady.

Industry sources indicate that private retailers do not receive government support to offset losses when prices are held artificially low, unlike public sector companies that are often expected to absorb such shocks. This disparity has put increasing financial strain on private firms, prompting Nayara to adjust prices.

While the rates of regular petrol and diesel have remained unchanged for consumers at large since April 2022, state-run companies recently raised prices of premium petrol and bulk diesel supplied to industrial users.

Global oil prices had climbed to around $119 per barrel earlier this month before easing to near $100, reflecting ongoing geopolitical uncertainty. India, which imports a substantial portion of its crude oil requirements, remains particularly vulnerable to such fluctuations.

The government has maintained that petrol and diesel prices are deregulated and are determined by oil marketing companies based on market conditions.

The latest price revision is expected to intensify the debate over fuel pricing policies, especially as global energy markets remain volatile and domestic consumers face the prospect of rising costs.

With PTI inputs