Nayara Energy Increases Petrol and Diesel Prices Amid West Asia Supply Disruptions

India Fuel Price Update: Nayara Energy Raises Prices Amid Global Supply Crunch

Nayara Energy, a Rosneft-backed company, has increased petrol and diesel prices by ₹5 and ₹3 per liter, respectively, across its retail network. This move comes as the company seeks to maintain profitability amidst the ongoing global supply crunch.

Key Figures:

• ₹100.71: Petrol price at Nayara outlets in Haryana
• ₹91.21: Diesel price at Nayara outlets in Haryana
• ₹100.20: Petrol price at Nayara outlets in Uttar Pradesh
• ₹91.10: Diesel price at Nayara outlets in Uttar Pradesh
• ₹94.77: Petrol price at state-run OMCs in Delhi
• ₹87.67: Diesel price at state-run OMCs in Delhi (unchanged since March 2024)

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Nayara operates the largest retail network among private players in India, with around 6,500 fuel pumps. The company has stated that it is focused on meeting India's energy demand with a steady supply of fuels, while prioritizing operational stability and uninterrupted service for its customers.

Global Market Update:

• Brent crude: Neared $119 per barrel last week, before easing to around $100 after US President Donald Trump announced a five-day halt to strikes on Iran's power and energy assets.
• May Brent contract: Currently trading at $104.83 per barrel, up 2.62% from the previous close.
• May West Texas Intermediate contract: Rose 2.45% to $104.78 a barrel.

Impact on Oil Marketing Companies:

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• Negative marketing margin: OMCs are currently witnessing a negative marketing margin due to high crude prices.
• Buffer to absorb impact: OMCs have a buffer to absorb the impact of high prices, given that prices were stagnant when global crude prices were subdued around $60-65 per barrel.

Economic Impact:

• Annualised losses: Oil marketing companies are absorbing annualised losses of nearly ₹3 trillion at prevailing crude price levels.
• Fuel price hike: Retail fuel prices would need to rise by as much as 43% for diesel and 19% for petrol to restore normal margins.
• GDP growth: If crude prices remain at $130 per barrel for two to three quarters, GDP growth could be reduced by 100 basis points.