Virendra Pandit
New Delhi: Nayara Energy, India’s largest private fuel retailer, on Thursday increased petrol prices by Rs. 5 per liter and diesel by Rs. 3 a litre, indicating the likelihood of a similar step by the country’s state-owned oil marketing companies (OMCs) to raise prices to pass on part of the recent surge in global oil prices amid the ongoing conflict in West Asia (Middle East), the media reported.
India’s fuel marketing companies have been under strain as retail petrol and diesel prices remained frozen so far, despite a nearly 50 percent surge in international oil prices since February 28 when the United States and Israel launched military strikes against Iran, triggering sweeping retaliation from Tehran against them, as also the pro-US Arab nations.
Now, Nayara Energy, which currently operates 6,967 of India’s 102,075 petrol pumps, has decided to pass on part of the increase in input costs to consumers, the reports said.
Jio-bp, the fuel retailing joint venture of Reliance Industries and BP Plc that owns 2,185 outlets, has, however, not raised retail prices so far despite incurring heavy losses on sale of petrol and diesel.
The three state-promoted fuel retailers—Indian Oil, Bharat Petroleum, and Hindustan Petroleum—who control about 90 percent of the market, continue to keep rates on freeze.
While Nayara, majority-owned by Russia’s Rosneft, hiked petrol and diesel prices, the effective rate increase differs from state to state depending on local taxes like VAT. In some places, the increase is as high as Rs. 5.30 per liter for petrol.
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.” Mounting losses have forced private players like Nayara to raise retail prices.
Retail petrol and diesel prices have remained frozen in India since April 2022, with state-run OMCs 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 liter and the rate of bulk diesel sold to industrial users by about Rs. 22 a litre.
However, the price of normal/regular petrol and diesel remain unchanged.
Premium 95-Octane petrol price in Delhi has been increased from Rs. 99.89 per liter to Rs. 101.89. Besides, bulk or industrial diesel prices were hiked from Rs. 87.67 per liter to Rs.109.59 in the national capital.
International oil prices touched USD 119 per barrel in early March after the ongoing war intensified, but pulled back to around USD 100 a barrel.
A liter of normal petrol in Delhi continues to cost Rs. 94.77 while the same grade diesel comes for Rs. 87.67 a litre.
Normal petrol typically has an octane rating of 91-92 and is suitable for standard engines, offering adequate performance for everyday driving. On the other hand, premium petrol has a higher-octane rating of 95-98, making it ideal for high-performance or high-compression engines.
The government has maintained that petrol and diesel are deregulated commodities whose pricing is independently decided by the OMCs.
India imports nearly 88 percent of its crude oil requirements and half of its natural gas needs, mostly via the Strait of Hormuz. Following the US and Israeli attacks on Iran’s facilities, Tehran warned ships to keep away from the strait, and insurers withdrew coverage, effectively halting tanker movements.
Energy prices had risen to USD 119 per barrel in June 2022 in the aftermath of Russia’s invasion of Ukraine. That year, oil companies had nominal profits, but in 2023-24, they posted record Rs. 81,000-crore profit, helping make up for past dent in margins.
In 2025-26, the three OMCs posted Rs. 23,743 crore profit in the September-December quarter alone.
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