NEW DELHI: As the West Asia war tightens fuel supplies and drives crude prices sharply higher, Rosneft-backed Nayara Energy has raised petrol and diesel prices by ₹5 and ₹3 per litre respectively across its retail network. The move puts it ahead of state-run oil marketing companies (OMCs), which have largely held regular fuel prices steady.
The hike comes days after state-run OMCs increased prices of premium petrol and industrial diesel amid the supply crunch triggered by the conflict.
In Haryana, petrol at Nayara outlets is now around ₹100.71 per litre and diesel about ₹91.21 per litre, said a petrol pump dealer based out of Faridabad. In Uttar Pradesh, Nayara’s petrol is priced at ₹100.20 per litre and diesel at ₹91.10 per litre. Prices vary across states due to differences in value-added tax.
In contrast, state-run OMCs continue to sell petrol in Delhi at ₹94.77 per litre and diesel at ₹87.67 per litre, with 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 supplies has created unprecedented challenges in the industry, impacting several aspects of fuel distribution and availability,” Nayara said in a statement.
The company said that it is focused on meeting India’s energy demand with a steady supply of fuels, adding that its retail outlets are operating normally without disruptions and that its refinery maintenance has been planned to avoid any supply shortfall.
“Nayara Energy is committed to being the nation’s energy partner and prioritizes operational stability and uninterrupted service for our customers,” it added.
Crude surge
The price increase coincides with a surge in global oil markets. Last week, benchmark Brent crude neared $119 per barrel before easing to around $100 after US President Donald Trump announced a five-day halt to strikes on Iran’s power and energy assets, alongside claims of potential ceasefire talks. Iran has acknowledged receiving messages from the US but denied participating in any negotiations so far.
Fresh strikes from both sides have kept markets volatile, with oil prices remaining elevated. At 1:11 pm, the May Brent contract on the Intercontinental Exchange was at $104.83 per barrel, up 2.62% from the previous close, while the May West Texas Intermediate contract on NYMEX rose 2.45% to $104.78 a barrel.
On 20 March, state-run OMCs raised industrial diesel prices by around ₹22 per litre and premium petrol by about ₹2 per litre, according to industry sources, while keeping regular transport fuel and premium diesel prices unchanged.
“As market prices of crude purchased by refiners are well above the marker prices on the exchanges, OMCs are currently witnessing a negative marketing margin. However, as of now they have a buffer to absorb the impact of high prices given the prices were stagnant when global crude prices were subdued around $60-65 per barrel,” said Prashant Vasisht, senior vice president and co-group head, corporate ratings, ICRA Ltd.
As of 24 March, the Indian crude basket stood at $147.24 per barrel. So far in March, it has averaged $123.15 per barrel, compared to $69.01 last month.
According to a recent Emkay research report, with Brent crude hovering at $100–102 per barrel, India’s fuel pricing system is under acute strain. OMCs are absorbing annualized losses of nearly ₹3 trillion at prevailing crude price levels,while retail fuel prices would need to rise by as much as 43% for diesel and 19% for petrol to restore normal margins.
Rising fuel prices are a concern for consumers and could weigh on macroeconomic indicators such as inflation and growth. Chief economic advisor V. Anantha Nageswaran told a parliamentary panel last week that if crude prices remain at $130 per barrel for two to three quarters, GDP growth could be reduced by 100 basis points. India can sustain its growth momentum if prices are around $90 per barrel, he said. GDP growth for FY26 is expected to be 7.6%.
