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 over two years to lower pump prices as international crude oil rates softened following easing tensions in West Asia.
The revised prices are effective across Nayara's network of more than 7,000 fuel stations nationwide, according to industry sources. Pump prices, however, continue to vary across states due to differences in value-added tax (VAT) and other local levies.
The price reduction comes after global crude oil prices retreated as hostilities in West Asia subsided and the reopening of a key maritime route restored the movement of crude oil and liquefied natural gas, easing concerns over supply disruptions.
Public sector oil marketing companies, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), have not revised retail fuel prices. Together, the three companies account for more than 90 per cent of India's over one lakh fuel stations.
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 drove up international crude prices.
State-run 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, citing higher global crude prices and elevated product costs.
Wednesday's revision effectively rolls back Nayara's March price hike and marks the first reduction in retail fuel prices reaching Indian consumers after global oil markets stabilised in recent weeks.
Sources said that following the completion of a refinery turnaround, Nayara is fully prepared to meet fuel demand and has mobilised its entire retail network to cater to consumption requirements across the country.
Nayara Energy operates a 20-million-tonnes-per-year oil refinery at Vadinar in Gujarat.
(With inputs from PTI)