New Delhi, October 3 (TNA) Nayara Energy has increased the prices of petrol and diesel by Rs 5 and Rs 3 per litre, respectively, across its nationwide network, effective from the early hours of Saturday. The move comes as rising international crude oil and refined-product prices put pressure on the company’s retail fuel margins.
The revised rates have been implemented at Nayara Energy’s 7,108 fuel stations across India. The private fuel retailer is seeking to narrow the gap between pump prices and its rising procurement and operating costs.
The exact increase in the final retail price may vary from state to state because of differences in local taxes, including VAT. Nayara had earlier raised petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre in March, when its rates in some locations stood at around Rs 100.71 per litre for petrol and Rs 91.31 per litre for diesel.
The latest hike comes at a time when international crude oil prices and refined fuel costs have risen sharply, while domestic pump prices have largely remained unchanged. This has resulted in growing marketing losses for fuel retailers, particularly private companies that do not receive government compensation for holding prices below market-linked costs.
Rating agency Icra estimated that oil marketing companies were facing negative marketing margins of around Rs 8 per litre on petrol and Rs 9 per litre on diesel in September. The companies were reportedly losing nearly Rs 530 crore a day across petrol, diesel and LPG because of higher crude prices and unchanged domestic retail rates.
The government had, on October 1, advised private fuel retailers not to restrict petrol and diesel sales at their outlets. The direction came after Nayara Energy and Jio-bp reportedly limited fuel volumes at some stations amid mounting losses on retail sales.
State-owned oil marketing companies, which operate more than 90 per cent of India’s over 104,000 fuel stations, have largely maintained stable retail prices so far. The differing pricing strategy between public-sector and private retailers could lead to variations in fuel prices and availability across outlets.
Nayara Energy’s price revision is expected to provide some relief to its retail margins, but it may also increase the financial burden on consumers and transport operators. Further changes could follow if global crude and refined-product prices remain elevated.