Petrol, Diesel Price Hike: Major setback for people. Nayara Energy, one of the largest private fuel companies in India, raised petrol prices by Rs 5 per liter and diesel by Rs 3 per liter on Thursday. This adjustment reflects some of the recent rise in global oil prices due to the ongoing conflict in the Middle East, which is being passed on to consumers. Fuel marketing companies in India are facing significant pressure.
Despite a nearly 50 percent surge in global crude oil prices since February 28, retail petrol and diesel prices have remained stable. This situation follows military strikes launched by the US and Israel against Iran on February 28, which prompted a strong response from Tehran.
According to two sources familiar with the situation, Nayara Energy, which operates 6,967 of India’s 102,075 petrol pumps, has opted to transfer some of the increased input costs to its customers. A spokesperson for the company did not provide immediate comments on this report. Meanwhile, Reliance Industries and BP Plc’s joint fuel retail venture, Jio-bp, which has 2,185 outlets, has yet to raise prices, even though it is facing significant losses on petrol and diesel sales. State-owned fuel retailers, holding about 90 percent of the market share, continue to keep their prices stable.
Petrol and diesel prices have seen an increase
Sources indicate that while Nayara, which is primarily owned by the Russian company Rosneft, has raised petrol prices by Rs 5 per liter and diesel by Rs 3 per liter, the actual price increase varies by state. This variation is influenced by local tax rates such as VAT. In some areas, the rise in petrol prices has reached Rs 5.30 per liter. It has been reported that private fuel retailers in India do not receive any government compensation for the losses they incur by holding back price increases. In contrast, state-owned companies benefit from government support for acting as ‘good corporate citizens.’ Furthermore, sources have noted that the growing losses have left these companies with no option but to raise retail prices.
No change in 4 years
Retail petrol and diesel prices have remained stable since April 2022. During this period, state-owned companies—Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—incur losses when crude oil prices are high and make profits when prices are low. Last week, these three retailers increased the price of premium, or high-grade, petrol by Rs 2 per liter. Additionally, the price of bulk diesel sold to industrial users was also increased by approximately Rs 22 per liter. However, there has been no change in the prices of regular petrol and diesel.
What is the price in Delhi?
The price of premium 95-octane petrol in Delhi has been increased from Rs 99.89 per liter to Rs 101.89 per liter. Additionally, the price of bulk or industrial diesel in the national capital has been increased from Rs 87.67 per liter to Rs 109.59 per liter. Earlier this month, international oil prices had reached $119 per barrel due to the escalation of the Iran war, but they have since fallen to around $100 per barrel. The price of a liter of regular petrol in Delhi remains Rs 94.77, while diesel of the same grade is available for Rs 87.67 per liter.
Regular petrol typically has an octane rating of 91-92. This is suitable for standard engines and provides adequate performance for everyday driving. Premium petrol, on the other hand, has an octane rating of 95-98, making it ideal for high-performance or high-compression engines.