The country’s largest private fuel company ‘Naira Energy’ gave a shock, increased the prices of petrol and diesel by Rs 5.

New Delhi, 26 March. The country’s largest private fuel company ‘Naira Energy’ on Thursday increased the prices of petrol by five rupees and diesel by three rupees per liter. The move is a move to pass on some of the recent surge in global oil prices to consumers following the ongoing war in the Middle East.

It is well known that fuel marketing companies in India are under pressure as retail petrol and diesel prices have remained stable despite an increase of almost 50 percent in international oil prices since the US and Israel launched military attacks on Iran on February 28.

Nayara operates 6,987 petrol pumps across the country.

Nayara Energy, which operates 6,967 of India’s 102,075 petrol pumps, has decided to pass on some of the increase in input costs to consumers, two sources with direct knowledge of the matter said. However, the company spokesperson did not immediately comment on this news.

2,185 Jio-BP having outlet has not increased the prices yet

On the other hand, Jio-BP, a joint venture between Reliance Industries and BP Plc, has 2,185 outlets. But despite incurring huge losses in the sale of petrol and diesel, this private company has not increased the prices till now. Government fuel retailers, who control about 90 per cent of the market, have also kept prices unchanged.

Russia’s Rosneft-owned Naira has increased the price of petrol by Rs 5 per liter and diesel by Rs 3 per litre, but the effective rate of increase varies across states, depending on local taxes like VAT, according to sources. At some places the price of petrol has increased by up to Rs 5.30 per litre.

According to sources, private fuel retailers in India do not receive any compensation from the government for losses incurred by not increasing prices, while government companies are given support to act as ‘good corporate citizens’. Due to mounting losses they have no option but to increase retail prices.

Retail petrol and diesel prices are stable from April 2022. State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) suffer losses at high crude prices and make profits at low prices. Last week, these three retailers had increased the price of premium or higher grade petrol by Rs 2 per liter and the price of bulk diesel sold to industrial users by about Rs 22 per liter.