New Delhi

Nayara Energy has increased fuel prices, raising petrol by ₹5 per litre and diesel by ₹3, becoming the first major retailer to pass on the impact of rising global crude costs to consumers.

The move comes amid a sharp surge in international oil prices triggered by escalating tensions in West Asia, following military actions involving the United States, Israel, and Iran.

Sources said private fuel retailers have been under mounting pressure as domestic retail prices of petrol and diesel have largely remained unchanged despite a steep rise in crude oil rates since late February.

Operating nearly 7,000 fuel stations across the country, Nayara Energy has decided to partially transfer the increased input costs to consumers. The actual hike may vary across states due to differences in local taxes such as VAT.

In contrast, Jio-bp — a partnership between Reliance Industries and BP — has so far refrained from raising prices, even as it reportedly faces losses.

Meanwhile, state-run oil marketing companies including Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited continue to hold retail fuel prices steady. These firms dominate nearly 90 per cent of the market and typically absorb losses during high crude price periods.

However, these public sector companies recently raised prices of premium petrol and bulk diesel supplied to industrial consumers, while keeping regular fuel rates unchanged.

Global crude prices had briefly climbed to around USD 119 per barrel earlier this month before easing closer to USD 100. The volatility has been linked to disruptions in supply routes, particularly through the Strait of Hormuz — a crucial corridor for India’s energy imports.

India relies heavily on imports, sourcing nearly 88 per cent of its crude oil requirements from overseas. Any disruption in supply chains or shipping routes has a direct bearing on domestic fuel economics.

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The government has maintained that petrol and diesel prices are deregulated, allowing oil marketing companies to determine rates based on market conditions.