Nayara Energy Hikes Petrol Price by Rs 5 per Litre, Diesel by Rs 3
Nayara Energy, which operates 6,967 of India's 102,075 petrol pumps, has decided to pass on part of the increase in input costs to consumers, two sources with direct knowledge of the matter said
New Delhi: Amid speculations about the fuel price hikes in the country, India’s largest private fuel retailer Nayara Energy on Thursday hiked petrol prices by over Rs 5 per litre and diesel by Rs 3 per litre. It is, however, expected that other private as well as government-owned oil marketing companies will follow suit soon. With this move, it may add more pressure on household budgets and daily expenses for common man in the country, according to the sources.
Despite the government’s measures to keep the fuel stock available and prices unchanged, some oil firms are forced to pass it on to consumers due to the recent surge in global oil prices following the war in the Middle East. But the leading state-owned fuel retailers, who control about 90 per cent of the market, are learnt to have kept rates on freeze as of today. However, Nayara Energy’s move comes at a time when it is reportedly preparing to temporarily halt operations at its Vadinar refinery in Gujarat, raising concerns about domestic fuel availability.
According to the report, Hyderabad recorded one of the highest petrol prices at Rs 107.46 per litre, with Mumbai and Kolkata also seeing rates above Rs 100 per litre.Similarly, diesel prices in Hyderabad touched Rs 95.70 per litre. The fuel price rise, however, reflects global energy tensions following attacks on oil facilities and disruptions near the Strait of Hormuz due to the Iran-US conflict.
The sources also said that Nayara Energy, which operates 6,967 of India’s 102,075 petrol pumps, has decided to pass on part of the increase in input costs to consumers. “Nayara Energy, majority-owned by Russia’s Rosneft, hiked petrol price by Rs 5 per litre and diesel by Rs 3, the effective rate increase differs from state to state depending on the incidence on local taxes like VAT. In some places, the increase is as high as Rs 5.30 per litre for petrol,” the source said.
However, industry experts are of view that if crude prices remain elevated for an extended period, PSU oil marketing companies (OMCs) may have limited room to avoid price hikes, raising the likelihood of broader fuel price increases across the country. Not only private players, but also state-owned OMCs’ are forced to increase their fuel prices due to mounting losses which have left them with little options for them,” they said.
With the development, Narara Energy issued a statement, saying that the disruption in crude oil supplies has created unprecedented challenges in the industry, impacting several aspects of fuel distribution and availability. “We assure our customers that we are fully focused on meeting India’s energy needs by maintaining a consistent supply of high-quality fuels. Our 7000+ retail network continues to operate normally, with no interruptions in service across our outlets,” the company said.
“Further our refinery turnaround has been meticulously planned and we remain fully equipped to ensure that there will be no shortfall in fuel supplies during this period. Nayara Energy is committed to being the nation’s energy partner and prioritises operational stability and uninterrupted service for our customers,” the company added.
Meanwhile, the government on Thursday said that India has about 60 days of oil stock cover and 800,000 tonnes of LPG secured, arranging one full month of LPG supply. “There is no shortage of petrol, diesel, or LPG, calling reports of shortages as a deliberate misinformation campaign aimed at triggering panic buying,” the ministry of petroleum and natural gas said in a statement.
