Petrol up Rs 5, diesel up Rs 3 as Nayara Energy raises fuel prices amid global oil surge

Nayara Energy on Thursday increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre becoming the first major fuel retailer in India to pass on the impact of rising global crude oil prices to consumers reported news agency PTIThe price hike comes against the backdrop of a sharp surge in international oil prices triggered by escalating geopolitical tensions in the Middle EastPrivate Retailer Passes on Rising Input CostsSources indicated that the company decided to revise retail fuel prices due to mounting pressure from higher crude oil costs Global oil prices have risen significantly in recent weeks following military actions involving the United States and Israel against Iran which led to retaliatory measures and disrupted supply dynamics reported PTIAs a result international crude prices surged nearly 50 per cent since late February prompting private fuel retailers to reassess pricing strategiesPrice Impact Varies Across StatesWhile Nayara has announced a uniform increase of Rs 5 per litre for petrol and Rs 3 for diesel the effective price rise differs across states due to variations in local taxes such as Value Added Tax VAT reported PTIIn some regions petrol prices have reportedly increased by as much as Rs 530 per litre reflecting the influence of statelevel levies on final retail pricesStateOwned Firms Continue Price FreezeDespite rising global prices staterun oil marketing companies such as Indian Oil Corporation Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited have maintained a freeze on retail petrol and diesel prices since April 2022 reported PTIThese firms collectively control nearly 90 per cent of the domestic fuel retail market and have absorbed losses during periods of high crude prices offset by profits when prices softenHowever they recently increased prices of premium petrol and bulk diesel supplied to industrial users while keeping regular fuel rates unchangedOther Private Players Hold Rates Despite LossesAnother private retailer Jiobpmdasha joint venture between Reliance Industries and BPmdashhas so far refrained from raising fuel prices despite reportedly incurring losses reported PTIIndustry sources noted that unlike public sector companies private retailers do not receive government support to cushion losses leaving them more exposed to fluctuations in global oil marketsGlobal Oil Volatility Driving Domestic PressureInternational crude oil prices had climbed to around USD 119 per barrel earlier this month amid intensifying geopolitical tensions before easing slightly to about USD 100 per barrel reported PTIIndia which imports nearly 88 per cent of its crude oil requirements remains highly vulnerable to such global disruptions particularly as a large portion of supplies pass through the strategically important Strait of HormuzConcerns over shipping disruptions and insurance withdrawals in the region have further strained supply chains adding to pricing pressuresGovernment Maintains Deregulated Pricing PolicyThe government has reiterated that petrol and diesel prices in India are deregulated with oil marketing companies responsible for setting retail rates based on market conditionsCurrently in the national capital petrol continues to retail at Rs 9477 per litre and diesel at Rs 8767 per litre for standard grades even as private players begin adjusting prices in response to global trends reported PTIWith inputs from PTI