Nayara Energy on Wednesday reduced petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre across its nationwide retail network, becoming the first fuel retailer in more than two years to cut pump prices as easing tensions in West Asia pulled down global crude oil prices. The revised prices have come into effect at all of Nayara's over 7,000 fuel stations across the country, though the final retail price will continue to vary from state to state depending on local taxes such as VAT.
The move comes after international crude prices retreated in recent weeks following the easing of hostilities in West Asia and the reopening of a key maritime route, which helped restore crude oil and liquefied natural gas supplies and eased concerns over global supply disruptions.
State-run fuel retailers, however, have not followed suit. 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, kept petrol and diesel prices unchanged. In Delhi, petrol continues to retail at Rs 102.12 per litre and diesel at Rs 95.20 per litre at IOC outlets.
Nayara had earlier increased petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre on March 26 after the Iran conflict triggered a sharp rise in international crude prices. State-owned fuel retailers subsequently raised petrol and diesel prices by a cumulative Rs 7.50 per litre each through multiple revisions in the second half of May.
The latest reduction effectively rolls back Nayara's March hike and marks the first downward revision in retail fuel prices after global oil markets stabilised.
Industry sources said the company has completed the turnaround of its refinery and is operating at full capacity to meet domestic fuel demand. Nayara operates a 20-million-tonne-per-year refinery at Vadinar in Gujarat.
It was a day of good news for consumers as the Centre reduced the price of commercial LPG cylinders by Rs 183, rolling back a series of hikes imposed during the Iran conflict and the wider West Asia crisis. In Delhi, the price of a 19-kg commercial LPG cylinder has been cut to Rs 2,930 from Rs 3,113.
The price reduction comes days after the government restored commercial LPG supplies to pre-conflict levels for businesses such as restaurants, hotels and other establishments, ending sector-specific restrictions that had been imposed to conserve fuel stocks during the crisis.
In a statement, the Petroleum Ministry said the curbs were lifted following an improvement in domestic LPG production and the expected arrival of imported cargoes. It added that bulk LPG supplies, which had been suspended when the conflict began, have also been partially resumed at 50 per cent of pre-war consumption levels.
Commercial LPG supplies were severely disrupted during the peak of the West Asia crisis, prompting repeated price hikes and supply restrictions amid concerns over import availability. Although supplies had gradually improved to around 70 per cent of normal levels in recent weeks, several sectors continued to face allocations capped at 50 per cent until the latest decision.
Source: India Today