State-owned fuel retailers, who control about 90 per cent of the market, continue to keep rates on freeze. (File Photo)
Nayara Energy, India’s largest private fuel retailer, raised petrol prices by Rs 5 a litre and diesel by Rs 3/litre, due to the surge in global oil prices following the war in West Asia, sources told PTI.
Russia-backed Indian private refiner Nayara Energy has decided to pass on part of the increase in input costs to consumers, two sources with direct knowledge of the matter told PTI.
Why have prices increased?
As petrol and diesel remained frozen despite a nearly 50 per cent surge in international oil prices, fuel marketing companies in India have faced the strain.
Nayara Energy’s decision comes as international oil prices surged significantly since February 28, when United States and Israel launched military strikes on Iran, triggering retaliation and disrupting global energy markets.
The Russia-backed private refiner has raised prices in a move aimed at offsetting mounting revenue losses from retail fuel sales, petrol pump dealers said, according to a Reuters report.
State-owned fuel retailers, who control about 90 per cent of the market, continue to keep rates on freeze. Jio-bp, the fuel retailing joint venture of Reliance Industries and BP Plc that owns 2,185 outlets, has, however, so far not raised prices despite incurring heavy losses on sale of petrol and diesel.
Sources said while Nayara, 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. In some places, the increase is as high as Rs 5.3 a litre for petrol.
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“Private fuel retailers in India receive no government compensation to offset losses from holding back price increases, unlike state-owned firms that are supported for acting as “good corporate citizens”, sources told PTI, adding that mounting losses have left them with little choice but to raise retail prices.
Retail petrol and diesel prices have been frozen since April 2022, with state-run Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) absorbing losses when crude prices are high and making profits when rates are low.
The three retailers last week hiked the price of premium or higher-grade petrol price by Rs 2 per litre and the rate of bulk diesel sold to industrial users by about Rs 22 a litre.
However, the price of normal petrol and diesel remains unchanged.
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Petrol, diesel prices
Premium 95-Octane petrol price in Delhi has been increased from Rs 99.89 per litre to Rs 101.89. Alongside, bulk or industrial diesel prices were hiked from Rs 87.67 per litre to Rs 109.59 in the national capital.
International oil prices touched USD 119 per barrel earlier this month on intensifying Iran war, before pulling back to around USD 100 a barrel.
A litre of normal petrol in Delhi continues to cost Rs 94.77 while the same grade diesel comes for Rs 87.67 a litre.
The government has maintained that petrol and diesel are deregulated commodities whose pricing is independently decided by oil marketing companies.
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