Nayara Energy has cut petrol prices by Rs 5 per litre and diesel by Rs 3 a litre across its nationwide network on Wednesday July 1, marking the first reduction in retail fuel prices by any company in more than two years as easing tensions in West Asia pulled down international oil prices.
The reduction comes after global crude oil prices retreated as tensions in West Asia eased and shipping through the Strait of Hormuz gradually returned to normal, easing concerns over disruptions to global energy supplies.
The revised prices are effective across Nayara Energy's network of more than 7,000 retail fuel outlets nationwide, although pump prices will continue to vary from state to state because of differences in local taxes, including value-added tax (VAT).
Public sector oil marketing companies have not followed suit. Indian Oil Corp. Ltd., Bharat Petroleum Corp. Ltd. and Hindustan Petroleum Corp. Ltd., which together operate the bulk of India's fuel retail network, have left petrol and diesel prices unchanged. In Delhi, IOC continues to sell petrol at Rs 102.12 per litre and diesel at Rs 95.20 per litre.
Nayara had previously increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre in March after geopolitical tensions in West Asia drove global crude prices sharply higher. State-run fuel retailers later raised prices by a cumulative Rs 7.50 per litre for both petrol and diesel during May to reflect higher input costs.
The latest reduction effectively rolls back Nayara's earlier increase and marks one of the first retail fuel price cuts since international oil markets stabilised.
According to PTI sources, the company has completed maintenance work at its refinery and is operating at full capacity to meet domestic fuel demand. Nayara operates a 20 million tonne-per-year refinery at Vadinar, Gujarat, making it one of India's largest private refining and fuel retail companies.
(with inputs from PTI)
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