Pre-festival inflation shock: Petrol up by Rs 5, diesel prices also rise
The company operates over 7,100 pumps across India. This is its second hike this year after March, following a temporary cut in July
New Delhi (The Uttam Hindu): Amid rising global energy prices, private fuel company Nayara Energy has raised petrol and diesel prices. The company has increased the price of petrol by ₹5 per liter and diesel by ₹3 per liter . The new prices came into effect from the early hours of Saturday, October 3. Nayara has approximately 7,108 petrol pumps across the country.
The impact of rising global prices
According to the report, rising international crude oil and refined petroleum product prices have put pressure on fuel companies' margins. Naira has again raised petrol and diesel prices in response to these rising cost pressures.
Nayara had previously increased petrol prices by ₹5 and diesel by ₹3 per liter on March 26, 2026. However, following the easing of tensions in West Asia and softening of international crude oil prices, the company reduced petrol prices by ₹5 and diesel by ₹3 per liter on July 1 .
There is also a dispute regarding the limit on the sale of petrol and diesel
The fuel price hike comes at a time when the issue of private petroleum companies limiting diesel sales at some petrol pumps is also under discussion. Petroleum Secretary Neeraj Mittal had said that no private fuel retailer is allowed to impose limits on petrol or diesel sales and that the government will raise the matter with the companies.
According to reports, at some pumps, Geo-BP had set a daily diesel purchase limit of 50 liters per customer , while at some Naira pumps, the limit ranged from 70 to 200 liters . This was attributed to the significant difference between retail and wholesale diesel prices and industrial customers purchasing larger quantities of diesel from retail pumps.
Increasing cost pressure on oil companies
According to estimates by rating agency ICRA, oil marketing companies were facing negative marketing margins of around 8% per liter on petrol and around 9% per liter on diesel in September. The agency estimated a combined loss of approximately ₹530 crore per day for the companies on petrol, diesel, and LPG.
The recent increase in the naira could lead to fuel prices at its petrol pumps being different from those of state-owned oil companies. If other companies also pass on the increased costs to customers, it could impact transportation and other operating costs.