Nayara Energy raised the price of petrol and diesel at all its fuel stations in India. Petrol prices have risen by Rs 5 per litre, while the price of diesel has been raised by Rs 3 per litre. The new prices will take effect from the early hours of Saturday, 3rd October. The increase comes as international prices of crude oil and refined petroleum products have risen once again. Nayara Energy owns a network of 7,108 petrol pumps across India. This is the second price revision by Nayara Energy this year.
Why Has Nayara Increased Petrol And Diesel Prices?
This increase is due to the increase in the price of international crude oil and refined products. The private fuel retailers have been under pressure due to the disparity between domestic and international prices of energy products.
The company had also raised petrol and diesel prices by Rs 5 and Rs 3 per litre, respectively, on March 26. That hike came after disruptions in global energy markets linked to the Iran conflict. At that time, petrol at Nayara outlets was priced at Rs 100.71 per litre, while diesel was Rs 91.31.
Nayara Had Cut Prices In July
Nayara later reversed that increase. On July 1, the company cut petrol prices by Rs 5 per litre and diesel prices by Rs 3. The reduction came after international crude prices eased as tensions in West Asia declined.
It was the first reduction by a fuel retailer in more than two years and brought Nayara’s prices broadly closer to those of state-owned oil companies. The latest hike shows how quickly changes in global oil prices can affect private fuel retailers.
Fuel Companies Under Margin Pressure
The latest increase comes at a time when oil marketing companies are facing mounting pressure on their margins. According to ICRA, OMCs were facing negative marketing margins of around Rs 8 per litre on petrol and Rs 9 per litre on diesel in September. The rating agency estimated that OMCs were losing around Rs 530 crore every day across petrol, diesel and LPG.
ICRA also said combined refining and marketing operations break even when crude prices are around $85-$90 per barrel. Higher crude prices without a corresponding rise in retail prices can result in marketing losses.
Government Warns Against Fuel Sales Restrictions
On October 1, the government said private fuel retailers should not restrict petrol and diesel sales at their outlets. The warning came after some private retailers, including Nayara and Jio-BP, had restricted volumes at certain pumps amid losses on retail sales.
As per officials, the cost of retail and bulk diesel has resulted in some industries buying cheaper diesel from retail filling stations. The Jio-BP station is in collaboration with Reliance Industries and BP of the UK. However, it has not increased the price hike so far.
State-Owned Fuel Pumps Still Dominate
The interesting fact here is that Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation constitute over 90 per cent of petrol pumps in India. Despite all the fluctuations, the retail prices have been relatively stable. Nayara’s recent price hike will widen the price gap between privately owned and state-owned filling stations.
For consumers, a sustained rise in fuel prices could increase transport and freight costs. It could also put pressure on household expenses and inflation. For fuel companies, however, keeping pump prices below rising market-linked costs can increase losses and create pressure for further price revisions.
Sudeep Singh Rawat is a Copy Editor at NewsX Digital with over five years of experience in digital journalism. He covers national and international news, with a focus on politics, crime, technology, public affairs, and trending topics. Before joining NewsX Digital, he worked with Business Standard, The Sunday Guardian, and other digital media organisations. His reporting focuses on breaking news, enterprise stories, and explainers that inform readers through accurate, balanced, and context-driven journalism.
