NEW DELHI: Nayara Energy, India’s largest private fuel retailer, on Wednesday announced a reduction in petrol and diesel prices. Petrol prices have been cut by Rs 5 per litre and diesel by Rs 3 per litre across its nationwide retail network, becoming the first fuel retailer in more than two years to reduce pump prices as easing tensions in the Middle East pushed international crude oil prices lower.The revised prices have come into effect at all of Nayara’s fuel stations across India, industry sources cited by PTI said. Retail prices, however, continue to vary from state to state depending on local taxes such as value-added tax (VAT).The move comes after global crude oil prices retreated following the easing of hostilities in West Asia and the reopening of a key maritime route, which restored the movement of crude oil and liquefied natural gas and eased concerns over supply disruptions.While Nayara lowered prices, state-run fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) left retail rates unchanged. Together, the three public sector companies account for over 90 per cent of India’s more than one lakh fuel stations.It is yet to be determined how much will this impact economically. Additionally, the prices will vary from state-to-state as per local taxes and VAT.In Delhi, petrol continues to retail at Rs 102.12 per litre and diesel at Rs 95.20 per litre at IOC outlets.The latest reduction effectively reverses the price hike Nayara announced on March 26, when it increased petrol prices by Rs 5 per litre and diesel by Rs 3 per litre after the Iran conflict drove up international crude oil prices.Public sector oil marketing companies followed later, raising petrol and diesel prices by a cumulative Rs 7.50 per litre each through a series of revisions during the second half of May to reflect higher global crude prices and increased fuel production costs.Wednesday’s announcement marks the first downward revision in retail fuel prices by any company since global oil markets began stabilising, passing on the benefit of softer international crude prices to consumers.Industry sources said Nayara has also completed its refinery turnaround and is operating at full capacity to meet rising fuel demand across the country through its retail network.Nayara Energy operates a 20-million-tonne-per-year refinery at Vadinar in Gujarat and is India’s largest private fuel retailer, with a network of more than 7,000 fuel stations.
