Private fuel retailer Nayara Energy has reduced the retail price of petrol by Rs 5 per litre and diesel by Rs 3 per litre across its nationwide network, becoming the first fuel retailer in more than two years to lower auto fuel prices. The revised rates came into effect from July 1 at over 7,000 Nayara fuel stations across the country, following a decline in global crude oil prices and easing geopolitical tensions in West Asia.
The move comes months after Nayara was also the first company to raise fuel prices during the peak of the conflict involving the United States and Iran. At that time, the company had increased petrol prices by Rs 5.30 per litre and diesel by Rs 3 per litre as global oil supplies were disrupted due to tensions in West Asia and the blockade of the Strait of Hormuz, a key route for global crude shipments.
Despite Nayara's price reduction, retail fuel prices at state-owned oil marketing companies remain unchanged. Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), which together operate more than 90 percent of the country's fuel retail outlets, have not announced any revision in petrol or diesel prices.
Nayara operates a 20-million-tonne-per-year refinery at Vadinar in Gujarat. Actual retail fuel prices may continue to vary across states depending on local taxes, including Value Added Tax (VAT).
Meanwhile, oil marketing companies have also announced a significant reduction in the price of 19-kg commercial LPG cylinders. Effective July 1, the price has been reduced by Rs 183.50 per cylinder, offering relief to restaurants, hotels and other commercial establishments that depend heavily on LPG.
Following the revision, a commercial LPG cylinder in Delhi will now cost Rs 2,930, compared with the earlier price of Rs 3,113. However, there has been no change in the price of the 14.2-kg domestic LPG cylinder.
The reduction follows a series of price increases triggered by higher global energy prices during the West Asia conflict.
Separately, the Central Government has withdrawn temporary restrictions imposed on the sale of auto fuels to bulk consumers. From July 1, state-run oil marketing companies have resumed normal fuel sales after the government lifted the restrictions introduced on June 12 during disruptions in global energy supplies caused by the Strait of Hormuz blockade.
The government has also removed the 200-litre daily diesel sale limit per vehicle, stating that the temporary measures had ensured adequate fuel availability across the country during the period of supply uncertainty.