Fuel prices rise at Nayara pumps: Petrol up ₹5, diesel ₹3 amid crude oil spike

Nayara Energy has raised petrol prices by ₹5 per litre and diesel by ₹3 per litre, becoming the first major fuel retailer to pass on part of the recent surge in global oil prices to consumers, news agency PTI reported on Thursday, citing sources.

The price increase comes as fuel retailers face rising input costs following a sharp increase in international crude prices linked to the ongoing conflict in West Asia.

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Nayara Energy, which operates 6,967 petrol pumps out of the country's 102,075 outlets, has decided to adjust retail prices to offset part of the cost pressures, two sources with direct knowledge of the matter said. The effective increase varies across states depending on local taxes such as VAT, with petrol prices rising by as much as ₹5.30 per litre in some regions.

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Other private retailers have so far held prices steady. Jio-bp, the fuel retail joint venture between Reliance Industries and BP Plc, which operates 2,185 outlets, has not increased rates despite incurring losses on fuel sales.

State-owned retailers — Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd — which together control about 90 per cent of the market, have also kept prices unchanged.

Retail petrol and diesel prices have remained frozen since April 2022, even as global oil prices have risen sharply. Crude prices surged nearly 50 per cent after February 28, when the United States and Israel launched military strikes against Iran, triggering retaliation and disruptions in supply routes.

International oil prices touched $119 per barrel earlier this month before easing to around $100.

Sources told the news agency that private fuel retailers do not receive government compensation to offset losses from holding back price increases, unlike state-owned firms that are supported for acting as "good corporate citizens", leaving them with limited options as losses mount.

India imports about 88 per cent of its crude oil requirement and roughly half of its natural gas, much of which transits through the Strait of Hormuz.

Following military strikes on Iran, concerns over shipping safety and insurance withdrawals have disrupted tanker movements, tightening supply.