Nayara Energy hikes petrol prices by Rs 5, diesel by Rs 3 amid Middle East crisis – The Times of India

NEW DELHI: India’s largest private fuel retailer Nayara Energy on Thursday raised its prices by Rs 5 per litre and diesel by Rs 3 a litre amid the ongoing Middle East crisis. 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, said PTI sources.The majority-owned by Russia’s Rosneft, has raised the prices but the actual increase varies across states due to differences in local levies such as VAT, with petrol prices in certain regions rising by as much as Rs 5.30 per litre.Fuel marketing companies in India are under increasing financial pressure, as retail petrol and diesel prices have been kept unchanged even though global oil prices have climbed nearly 50 per cent since February 28, when US–Israel strikes on Iran sparked a wider conflict and retaliation from Tehran.Private and state-run fuel retailers in India are taking divergent approaches as pressure mounts from elevated global crude prices and a prolonged freeze in retail rates.Jio-bp, the fuel retail joint venture between Reliance Industries and BP Plc, which operates over 2,100 outlets nationwide, has so far held petrol and diesel prices steady despite absorbing significant losses. In contrast, state-owned oil marketing companies—dominating roughly 90 per cent of the market—have also maintained a price freeze on standard fuels, continuing a strategy in place since April 2022.State-run companies—Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL)—have been absorbing losses during periods of high crude prices and recovering margins when prices soften. While retail prices for regular petrol and diesel remain unchanged, these companies recently increased the price of premium-grade petrol by Rs 2 per litre and sharply raised bulk diesel rates sold to industrial consumers by about Rs 22 per litre.In Delhi, the price of premium 95-octane petrol now stands at Rs 101.89 per litre, up from Rs 99.89, while bulk diesel rates have jumped to Rs 109.59 per litre from Rs 87.67. Meanwhile, standard petrol and diesel prices remain frozen at Rs 94.77 and Rs 87.67 per litre, respectively.The divergence reflects differences in fuel grades: regular petrol, typically rated at 91–92 octane, caters to standard engines, whereas premium petrol with higher octane levels (95–98) is designed for high-performance vehicles.Globally, crude oil prices surged to as high as $119 per barrel earlier this month amid escalating tensions involving Iran, before easing to around $100 per barrel. India, which imports nearly 88 per cent of its crude oil and about half of its natural gas requirements, remains highly exposed to such volatility—particularly as a significant portion of supplies passes through the strategically sensitive Strait of Hormuz. Recent threats from Iran following US and Israeli strikes, coupled with insurance withdrawals, have disrupted tanker movements through the route.The government has reiterated that petrol and diesel pricing is deregulated and determined by oil marketing companies.Historically, oil firms have navigated sharp price cycles. Crude had previously touched $119 per barrel in June 2022 after Russia’s invasion of Ukraine. While that year saw limited profitability, state-run companies posted record profits of Rs 81,000 crore in FY24, offsetting earlier margin pressures. In the current financial year, the three firms together reported profits of Rs 23,743 crore in the December quarter alone.