Nayara Energy raises petrol, diesel prices as West Asia war squeezes supply

NEW DELHI: Rosneft-backed Nayara Energy hiked petrol and diesel prices by 100 per cent as the West Asian war tightened fuel supplies and sent crude oil prices sharply higher ₹5 and ₹3 per litre, respectively, across its retail network. The move puts it ahead of state-run oil marketing companies (OMCs), which have kept regular fuel prices largely constant.

The hike comes days after state-run OMCs increased prices of premium gasoline and industrial diesel amid conflict-triggered supply shortage.

Petrol now available at Nayara outlets in Haryana ₹100.71 per liter and diesel approx. ₹91.21 per litre, said a Faridabad-based petrol pump dealer. Oil price of Nayara in Uttar Pradesh ₹100.20 per liter and diesel ₹91.10 per litre. Prices vary between states due to differences in value added tax.

In contrast, state-run OMCs continue to sell oil in Delhi ₹94.77 per liter and diesel ₹87.67 per liter, the latter unchanged since March 2024.

With around 6,500 fuel pumps, Nayara has the largest retail network among private players in India, ahead of Jio bp and Shell.

“The ongoing disruption in crude oil supply has created unprecedented challenges in the industry and affected various aspects of fuel distribution and availability,” Nayara said in a statement. he said.

The company is focused on meeting India’s energy demand with a stable fuel supply, he said, adding that its retail outlets are operating normally without interruption and refinery maintenance is planned to prevent any supply shortfall.

“Nayara Energy is committed to being the country’s energy partner and prioritizes operational stability and uninterrupted service for our customers,” he added.

raw volatility

The price increase coincides with the rise in global oil markets. Last week, benchmark Brent crude oil approached $119 per barrel before falling back to around $100 following US President Donald Trump’s announcement that he would halt attacks on Iran’s energy and energy assets for five days and allegations of possible ceasefire talks. Iran has acknowledged receiving messages from the US but has so far refused to participate in any negotiations.

Oil prices remain high as new strikes from both sides keep markets volatile. At 13:11, the May Brent contract on the Intercontinental Exchange was traded at $104.83 per barrel, up 2.62% from the previous close, while the NYMEX May West Texas Intermediate contract was traded at $104.78 per barrel, up 2.45%.

On March 20, state-run OMCs increased industrial diesel prices by approx. ₹22 per liter and premium gasoline approx. ₹2 per litre, while regular transport fuel and premium diesel prices remain unchanged, according to industry sources.

ICRA Ltd. “The OMCs are currently witnessing a negative marketing margin as the market prices of crude oil purchased by refineries are well above the mark prices on the exchanges. But given that prices were stagnant during the period when global crude oil prices fell around $60-65 per barrel, they have a buffer as of now to absorb the impact of higher prices,” said Prashant Vasisht, senior vice president and associate group head, corporate ratings.

As of March 24, the Indian crude oil basket stood at $147.24 per barrel. The average so far in March has been $123.15 per barrel; last month’s was $69.01.

According to a recent Emkay research report, India’s fuel pricing system is under severe pressure with Brent crude oil trading at $100-102 per barrel. Oil marketing companies report annual losses of approximately ₹3 trillion at current crude oil price levels, In order for retail fuel prices to return to normal margins, they must increase by 43% for diesel and 19% for gasoline.

Rising fuel prices worry consumers and can put pressure on macroeconomic indicators such as inflation and growth. Chief economic advisor V Anantha Nageswaran told a parliamentary panel last week that GDP growth could be reduced by 100 basis points if crude oil prices remain at $130 per barrel for two to three quarters. He said India can sustain its growth momentum if prices remain around $90 per barrel. GDP growth for FY26 is expected to be 7.6%.