Rosneft-backed Nayara Energy has raised petrol and diesel prices by ₹5 and ₹3 per litre, respectively, across its retail network, becoming the first major retailer to pass on the impact of surging crude prices, even as state-run oil marketing companies (OMCs) continue to hold retail rates amid mounting losses.
The price revision comes against the backdrop of a sharp spike in global crude prices triggered by the West Asia conflict, which saw benchmark Brent crude briefly touch $119 per barrel earlier this month before easing to around $100, while the Indian crude basket averaged $123.15 per barrel in March, compared to $69.01 last month.
At current levels, petrol at Nayara outlets is priced at around ₹100.71 per litre in Haryana and ₹100.20 in Uttar Pradesh, while diesel costs ₹91.21 and ₹91.10 per litre, respectively, according to dealers. In contrast, state-run OMCs have kept prices unchanged, with petrol at ₹94.77 per litre and diesel at ₹87.67 per litre in Delhi.
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The move follows recent increases by state-run OMCs in industrial diesel by about ₹22 per litre and premium petrol by ₹2 per litre on March 20, while regular retail fuel prices have remained frozen. The government has maintained that petrol and diesel are deregulated commodities, with pricing decisions left to oil companies.
According to recent data from the Petroleum Planning and Analysis Cell (PPAC), India’s fuel retail network stood at 102,075 petrol pumps, making it the third-largest globally after the United States and China.
Despite the scale, the sector remains dominated by public oil marketing companies, with over 90% of outlets operated by Indian Oil, Bharat Petroleum and Hindustan Petroleum.
Nayara, which leads the private segment with 7,000+ outlets, said the current situation has impacted supply chains but operations remain stable.
“The ongoing disruption in crude oil supplies has created unprecedented challenges in the industry, impacting fuel distribution and availability,” the company said in a statement.
It added that its “7,000+ retail network continues to operate normally, with no interruptions in service,” even as it focuses on ensuring consistent fuel availability.
The company also said its refinery operations have been planned to avoid any disruption. “Our refinery turnaround has been meticulously planned… ensuring there will be no shortfall in fuel supplies during this period,” it said.
“Nayara Energy is committed to being the nation’s energy partner and prioritises operational stability and uninterrupted service for our customers,” it added.
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The price hike highlights the growing strain on India’s fuel pricing system. According to Emkay Research, with Brent crude at $100–102 per barrel, OMCs are currently absorbing annualised losses of nearly ₹3 lakh crore, with retail fuel prices needing to rise by up to 43% for diesel and 19% for petrol to restore normal margins.
The sustained rise in crude prices is also raising macroeconomic concerns. Chief Economic Advisor V Anantha Nageswaran recently said that if crude prices remain at $130 per barrel for two to three quarters, India’s GDP growth could be reduced by 100 basis points, while the economy remains stable at around $90 per barrel.
TOPICSPetrol PriceThis article was first uploaded on March twenty-six, twenty twenty-six, at nineteen minutes past seven in the evening.