Fuel prices hike: Petrol up ₹5, diesel up ₹3 amid rising global crude oil costs

New Delhi (The Uttam Hindu): Private fuel retailer Nayara Energy on Thursday increased petrol and diesel prices. The company raised petrol prices by ₹5 per liter and diesel prices by ₹3 per liter.

With this decision, Nayara Energy joins the growing number of companies in passing on the impact of rising global crude oil prices directly to consumers by increasing petrol and diesel prices. However, prices may vary slightly in different states due to local taxes such as VAT. In some areas, petrol prices have increased by up to ₹5.30 per liter.

This increase comes at a time when international oil prices have risen sharply due to tensions in the Middle East. Crude oil prices have risen by nearly 50 percent since the end of February. During this period, Israel's attack on Iran and its retaliatory measures increased the fear of disruption in oil supplies. Recently, international crude oil prices reached around $119 per barrel, which later declined to around $100 per barrel. Despite this, state-owned oil companies like Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited have not yet made any changes in the prices of petrol and diesel.

These state-owned companies control approximately 90 percent of the country's fuel retail market, and prices have remained relatively stable since April 2022. India relies heavily on imports for its energy needs, with approximately 88 percent of its crude oil coming from abroad. A significant amount of this comes through the Strait of Hormuz, which is currently affected by tensions. Meanwhile, the government has stated that the country has adequate stocks of petrol and diesel, and all petrol pumps are operating normally. The government also stated that PNG connections are being rapidly expanded across the country and all refineries are operating at high capacity. Rumors of panic buying were seen in some areas, but the government has clarified that there is no shortage and that people need not panic.