India’s largest private fuel retailer hikes gasoline and gasoil prices

India’s private oil refining company Nayara Energy has increased prices for gasoline and gasoil, as refiners face mounting financial pressure from rising global oil prices and a weakening domestic currency.

According to Reuters, fuel station operators reported on Thursday, March 26, that the price hikes were introduced to offset part of the losses incurred from retail fuel sales.

Indian refiners have been significantly affected by the depreciation of the rupee and the surge in crude oil prices, while demand for gasoline and gasoil has climbed to multi-year highs. As a result, companies are selling fuel below market rates to protect consumers, leading to substantial losses.

Dealers said Nayara, the country’s largest private fuel retailer, raised gasoline prices by 5 rupees per litre to 100.71 rupees ($1.07) and gasoil prices by 3 rupees per litre to 91.31 rupees, based on an exchange rate of $1 = 94.1040 rupees.

The company operates 6,697 retail outlets across India and is preparing to shut down its Vadinar refinery, which has a capacity of 400,000 barrels per day, starting April 10 for a month-long maintenance period.

Beyond direct retail sales, Nayara also supplies fuel to state-owned refiners. This follows its inclusion in European Union sanctions last year due to its ties with Russian companies, including major oil producer Rosneft. The company has not issued an official comment on the latest developments.

Industry sources indicate that Indian refiners are currently losing more than 50 rupees per liter on gasoil and around 20 rupees per liter on gasoline due to regulated pricing below market levels.

Despite these pressures, state-run refiners have refrained from raising retail fuel prices, even as global oil prices have climbed above $100 per barrel. The increase has been driven by supply disruptions in the Strait of Hormuz amid the ongoing conflict involving the United States, Israel, and Iran.

State-owned companies dominate India’s fuel retail sector, controlling approximately 90% of the country’s 101,470 fuel stations through networks operated by Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp.

By Tamilla Hasanova