New Delhi: Private fuel retailer Nayara Energy has reduced petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre across its nationwide fuel station network, becoming the first oil marketing company in more than two years to pass on the benefit of lower global crude oil prices directly to consumers.

The revised prices have come into effect at all Nayara Energy outlets across India. However, the final retail prices will continue to vary across states due to differences in value-added tax (VAT) and other local levies.

Nayara first to cut fuel prices

The price reduction follows a decline in international crude oil prices after geopolitical tensions in West Asia eased. The reopening of a key maritime trade route restored crude oil and liquefied natural gas supplies, helping stabilise global energy markets and easing concerns over supply disruptions.

With this move, Nayara Energy has become the first fuel retailer to lower retail fuel prices after the recent correction in global crude prices.

Public sector OMCs maintain existing rates

While Nayara has reduced prices, public sector oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — have kept petrol and diesel prices unchanged.

Together, these three state-owned companies operate more than 90 per cent of India’s fuel retail outlets.

In New Delhi, IOC continues to retail petrol at Rs 102.12 per litre and diesel at Rs 95.20 per litre.

Rollback of March price hike

The latest reduction effectively reverses Nayara Energy’s fuel price hike announced on March 26, when it had increased petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre following a sharp spike in international crude oil prices triggered by the Iran conflict.

Subsequently, public sector fuel retailers also revised prices several times, raising petrol and diesel prices by a cumulative Rs 7.50 per litre during the latter half of May to offset higher crude oil costs and increased production expenses.

Consumers likely to benefit

The latest price cut is expected to provide relief to consumers, particularly in states where VAT rates are relatively lower. Industry observers will now watch whether public sector oil marketing companies also revise retail fuel prices if global crude oil prices remain stable.

Conclusion

Nayara Energy’s decision to reduce petrol and diesel prices marks the first significant retail fuel price cut in over two years by an Indian fuel retailer. Whether state-owned oil companies follow suit will depend on international crude price trends and domestic pricing considerations.