Private fuel retailer Nayara Energy on Wednesday slashed petrol price by Rs 5 per litre, diesel by Rs 3 in line with softening international oil prices, 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 price cut follows a retreat in global crude oil prices after hostilities in West Asia eased and the reopening of a key maritime route restored the flow of crude oil and liquefied natural gas, reducing concerns over supply disruptions.
The revised rates have come into effect at all of Nayara’s more than 7,000 fuel stations across the country, industry sources said. Actual pump prices vary across states depending on local levies such as value-added tax (VAT).
Public sector fuel retailers kept prices unchanged
Public sector fuel retailers, however, kept prices unchanged. State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), which together account for more than 90 per cent of India’s over one lakh fuel stations, did not announce any revision.
In Delhi, petrol continues to be priced at Rs 102.12 per litre and diesel at Rs 95.20 per litre at IOC outlets.
Nayara had been among the first retailers to raise fuel prices after the outbreak of the Iran conflict triggered a spike in international oil prices. On March 26, it increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre.
State-run fuel retailers followed later, raising petrol and diesel prices by a cumulative Rs 7.50 per litre each in a series of revisions during the second half of May, reflecting higher international crude prices and elevated product costs.
Nayara is fully geared to meet oil demand
Wednesday’s cut by Nayara effectively reverses its March increase and is the first signal of lower fuel prices reaching Indian consumers after global oil markets stabilised in recent weeks.
Sources said post-refinery turnaround, Nayara is fully geared to meet demand and is pressing its entire network to meet the consumption needs of the country. Nayara operates a 20 million tonnes per year oil refinery at Vadinar in Gujarat.
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