Naira hikes oil prices, petrol becomes costlier by Rs 5 and diesel by Rs 3

Nayara Energy, one of India's largest private fuel companies, on Thursday raised petrol prices by ₹5 per liter and diesel by ₹3 per liter. The company passed on some of the recent increase in global oil prices following the war in the Middle East to consumers. 

Fuel marketing companies in India are under pressure. Retail petrol and diesel prices have remained stable despite a nearly 50 percent increase in global crude oil prices since February 28. 

On February 28, the US and Israel launched military strikes against Iran, prompting strong retaliation from Tehran.

Two sources with direct knowledge of the matter said Nayara Energy, which operates 6,967 of India's 102,075 petrol pumps, has decided to pass on some of the increased input costs to customers. 

A company spokesperson did not immediately comment on the report. However, Reliance Industries and BP Plc's joint fuel retail venture, 

Jio-bp—which has 2,185 outlets—has not yet raised prices despite incurring heavy losses on petrol and diesel sales. State-owned fuel retailers, which have about 90 percent market share, are still maintaining prices stable.

Petrol and diesel prices increased

Sources said that while Nayara, majority-owned by Russian company Rosneft, has increased the price of petrol by ₹5 per liter and diesel by ₹3 per liter, the effective price increase varies from state to state. 

This difference depends on the rate of local taxes such as VAT. In some places, the increase in petrol prices has reached ₹5.30 per liter. According to sources, private fuel retailers in India do not receive any compensation from the government to cover losses incurred by preventing price increases. 

In contrast, state-owned companies receive government support for acting as "good corporate citizens." Sources further said that mounting losses have left them no choice but to increase retail prices.

No change in 4 years

Retail petrol and diesel prices have remained stable since April 2022. During this period, state-owned companies—Indian Oil Corporation (IOC), 

Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—incur losses when crude oil prices are high and make profits when prices are low. 

Last week, these three retailers increased the price of premium, or high-grade, petrol by ₹2 per liter. Additionally, the price of bulk diesel sold to industrial users was also increased by approximately ₹22 per liter. However, there has been no change in the prices of regular petrol and diesel.

What is the price in Delhi?

The price of premium 95-octane petrol in Delhi has been increased from ₹99.89 per liter to ₹101.89 per liter. Additionally, the price of bulk or industrial diesel in the national capital has been increased from ₹87.67 per liter to ₹109.59 per liter. 

Earlier this month, international oil prices had reached $119 per barrel due to the escalation of the Iran war, 

but they have since fallen to around $100 per barrel. The price of a liter of regular petrol in Delhi remains ₹94.77, while diesel of the same grade is available for ₹87.67 per liter.