Nayara Energy increase fuel prices; petrol by Rs 5, diesel by Rs 3

Indias largest private fuel retailer Nayara Energy has increased petrol prices by Rs 5 per litre and diesel by Rs 3 with immediate effect reported news agency PTIThe company which operates 7108 petrol pumps across India has hiked petrol and diesel prices with effect from early hours of Saturday PTI sources saidRenewed tensions in West Asia impacting global crude oil pricesThe price hike comes at a time when fuel retailers are feeling the impact of the elevated crude oil prices and supply chain disruptions amid geopolitical tensions in West Asia With the latest revision the company looks to pass the higher input costs to customers after relatively stable retail pricesThe private fuel retailer was the first to pass on the higher input cost of international oil prices to consumers when the USIran conflict disrupted global energy supplies earlier this yearIt had increased petrol prices by Rs 5 a litre and diesel by Rs 3 on March 26 taking the rates at its outlets to Rs 10071 and Rs 9131 a litre respectively at the time It reversed the price hike amid the easing crude oil prices in JulyStateowned oil marketing companies such as Indian Oil Corporation Bharat Petroleum Corporation and Hindustan Petroleum Corporation control more than 90 per cent of the countrys 104137 fuel petrol pumps They have historically kept pump prices relatively stable even when international crude prices have been volatileGovernment had asked private retailers not to cap petrol and diesel salesThe government directing private retailers to not cap petrol and diesel sales at their outlets on October 1 This was after Nayara Energy and Jiobp restricted volumes at some pumps amid losses on retail salesNobody is allowed to cap fuel sales It is not acceptable it is not done Oil Secretry Neeraj Mittal had saidPrivate retailers Jiobp and Nayara Energy had last month introduced purchase limits at some outlets as factories telecom companies hotels hospitals and other bulk users increasingly bought diesel meant for retail customersRetail petrol and diesel prices have remained unchanged since May while prices charged to industrial and other bulk consumers which are more closely linked to international market rates have risen more sharplyThe gap between retail and bulk diesel prices widened to as much as Rs 50 a litre which had encouraged industrial consumers to buy cheaper fuel from retail outlets putting pressure on suppliesJiobp the fuel retailing joint venture of Reliance Industries Ltd and bp of the UK which operates 2304 petrol pumps has so far not revised petrol and diesel prices as per PTIOil marketing companies affected by higher crude pricesLast month rating agency ICRA said oil marketing companies were incurring negative marketing margins of around Rs 8 per litre on petrol and Rs 9 per litre on diesel in September It said the oil companies were losing about Rs 530 crore a day across petrol diesel and LPG with elevated crude prices and unchanged domestic fuel prices putting pressure on their profitability and cash flowsWith inputs from PTI