Price Surge for Petrol, Diesel Hits Indian Consumers
Petrol and diesel prices saw an increase as private fuel providers like Nayara Energy passed on their higher input costs. Retailers maintain stable prices despite global crude oil price hikes.
Highlights
- •Nayara Energy raised petrol by Rs 5 and diesel by Rs 3 per liter
- •Global crude oil prices surged nearly 50% since February
- •State-owned fuel retailers like IOC, BPCL hold about 90% of the market share
- •Delhi's premium petrol price rose to Rs 101.89 per liter
Nayara Energy, a major private fuel company in India, has recently hiked petrol prices by Rs 5 per liter, with diesel seeing an increase of Rs 3 per liter starting Thursday. This adjustment marks a significant cost burden for Indian consumers, as it comes amid rising global oil prices due to ongoing conflicts and military strikes in the Middle East. Fuel marketing companies are feeling the strain from these increased input costs.
Global Crude Oil Prices on the Rise
The hike follows a nearly 50% surge in global crude oil prices, observed since February 28. Despite this escalation, retail petrol and diesel prices have remained largely stable until now. This situation is mainly due to military strikes launched by the US against Iran on that same date, which has prompted retaliatory responses from Tehran.
Nayara Energy, which operates a significant number of India's fuel stations, passed some of these increased costs onto its customers, marking another step in an upward trend for retail prices. Meanwhile, Reliance Industries and BP Plc's joint venture faced continuing losses on sales but chose not to increase their prices.
It is worth noting that state-owned fuel retailers—such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—which hold about 90% of the market share, have continued to keep their prices stable. Nevertheless, these companies still incur substantial losses when crude oil prices are high.
Delhi residents can now expect higher pump prices. For instance, premium 95-octane petrol has increased from Rs 99.89 per liter to Rs 101.89 per liter, while bulk diesel in the capital city rose by about Rs 22 per liter. In April 2022, regular petrol and diesel prices had remained unchanged for four years.
Regular petrol (octane rating of 91-92) is still available at a stable price of Rs 94.77 per liter in Delhi, whereas premium petrol prices have increased to Rs 101.89 per liter.
