Nayara Energy, India's largest private fuel retailer, has increased petrol prices by Rs 5 a litre and diesel by Rs 3 a litre across its national network, with the new rates taking effect in the early hours of Saturday, October 3.
The company, which operates a 20-million-tonne-a-year refinery at Vadinar in Gujarat alongside 7,108 fuel stations across India, said the adjustment was needed to align pump prices with rising international crude and refined-product costs. An email seeking the company's comment on the increase went unanswered.
Government warned retailers against rationing
The hike arrived just two days after the central government warned private fuel retailers against restricting sales at their outlets. On October 1, Oil Secretary Neeraj Mittal said the government would ask private fuel retailers not to restrict sales of petrol or diesel.
"Nobody is allowed to cap fuel sales. It is not acceptable; it is not done," Mr Mittal told reporters. Oil Minister Hardeep Singh Puri separately confirmed the ministry remained "in touch" with private retailers.
The intervention followed the introduction of purchase caps at private pumps. With the price gap between retail and bulk diesel reaching up to Rs 50 a litre, factories, telecom firms, hotels and hospitals diverted bulk purchases to ordinary petrol stations, in some cases buying 400–600 litres at a time. To manage inventories, Jio-bp capped diesel purchases at 50 litres per customer per day at affected outlets, while Nayara set daily limits ranging from 70 to 200 litres.
State firms absorb the pain
State-owned oil marketing companies, which control more than 90 per cent of India's 104,137 petrol pumps, have kept pump rates unchanged since May despite rising crude costs. Rating agency Icra estimated that state fuel retailers faced negative marketing margins of roughly Rs 8 a litre on petrol and Rs 9 a litre on diesel during September, losing an estimated Rs 530 crore a day across petrol, diesel and cooking gas.
Icra estimates that combined refining and marketing operations break even when global crude trades between $85 and $90 a barrel, with losses mounting beyond those levels unless retail prices rise. Nayara previously raised prices by the same amounts on March 26 and reversed them on July 1, when easing West Asia tensions brought global crude down.
Sources:
- Mathrubhumi English — "India's largest private fuel retailer raises petrol by Rs 5: What comes next for fuel prices"
- The Sunday Guardian — "Nayara Energy Changes Petrol & Diesel Rates"
The company, which operates a 20-million-tonne-a-year refinery at Vadinar in Gujarat alongside 7,108 fuel stations across India, said the adjustment was needed to align pump prices with rising international crude and refined-product costs. An email seeking the company's comment on the increase went unanswered.
Government warned retailers against rationing
The hike arrived just two days after the central government warned private fuel retailers against restricting sales at their outlets. On October 1, Oil Secretary Neeraj Mittal said the government would ask private fuel retailers not to restrict sales of petrol or diesel.
"Nobody is allowed to cap fuel sales. It is not acceptable; it is not done," Mr Mittal told reporters. Oil Minister Hardeep Singh Puri separately confirmed the ministry remained "in touch" with private retailers.
The intervention followed the introduction of purchase caps at private pumps. With the price gap between retail and bulk diesel reaching up to Rs 50 a litre, factories, telecom firms, hotels and hospitals diverted bulk purchases to ordinary petrol stations, in some cases buying 400–600 litres at a time. To manage inventories, Jio-bp capped diesel purchases at 50 litres per customer per day at affected outlets, while Nayara set daily limits ranging from 70 to 200 litres.
State firms absorb the pain
State-owned oil marketing companies, which control more than 90 per cent of India's 104,137 petrol pumps, have kept pump rates unchanged since May despite rising crude costs. Rating agency Icra estimated that state fuel retailers faced negative marketing margins of roughly Rs 8 a litre on petrol and Rs 9 a litre on diesel during September, losing an estimated Rs 530 crore a day across petrol, diesel and cooking gas.
Icra estimates that combined refining and marketing operations break even when global crude trades between $85 and $90 a barrel, with losses mounting beyond those levels unless retail prices rise. Nayara previously raised prices by the same amounts on March 26 and reversed them on July 1, when easing West Asia tensions brought global crude down.
Sources:
- Mathrubhumi English — "India's largest private fuel retailer raises petrol by Rs 5: What comes next for fuel prices"
- The Sunday Guardian — "Nayara Energy Changes Petrol & Diesel Rates"
