New Delhi: Nayara Energy has increased petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre from October 3, according to people familiar with the matter.
The increase applies across its network of 7,108 petrol pumps and comes as higher international crude oil and fuel costs squeeze retailers. Nayara had not responded to an email seeking comment.
Petrol And Diesel Prices Rise Again
India’s largest private fuel retailer had introduced an identical increase on March 26 after the Iran conflict disrupted energy supplies. It later withdrew that increase on July 1 as crude prices eased following reduced tensions in West Asia.
The latest revision brings pressure on customers after that relief. Current pump prices will depend on location and applicable taxes.
State Retailers Hold Dominant Position
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation control more than 90 per cent of India’s 1,04,137 fuel outlets.
These state owned retailers raised petrol and diesel prices through several increases in May, adding about Rs 7.50 per litre to both fuels by late May.
Jio-bp, which operates 2,304 petrol pumps, has so far kept its petrol and diesel prices unchanged.
Government Flags Fuel Sales Restrictions
On October 1, the government said private retailers should avoid limiting petrol and diesel sales. The direction followed volume restrictions at some Nayara and Jio-bp outlets amid retail losses.
Officials said cheaper retail diesel had attracted industrial buyers who would otherwise purchase bulk supplies, increasing pressure on pump stocks.
Higher Oil Costs Hit Retail Margins
Icra estimated September marketing losses at around Rs 8 per litre for petrol and Rs 9 for diesel. Combined daily losses across petrol, diesel and LPG were about Rs 530 crore.
Nayara operates a refinery at Vadinar in Gujarat with a capacity of 20 million tonnes.
Its price hike could widen the gap with state retailers, while higher fuel expenses may increase transport and business costs.
