Nayara Energy has raised petrol prices by Rs 5 a litre and diesel by Rs 3 a litre with immediate effect, widening the gap with state-run fuel retailers as higher international crude and refined-product prices squeeze marketing margins.
Following the hike, petrol at Nayara outlets in New Delhi is priced at Rs 107.12 a litre, Rs 5 higher than Rs 102.12 at state-run pumps, while diesel costs Rs 98.20 a litre compared with Rs 95.20, a gap of Rs 3, according to a fuel pump owner who did not wish to be identified.
The increase has also pushed prices sharply higher in other markets. In Bhopal, petrol at Nayara outlets is now priced at Rs 119.54 a litre, while diesel costs Rs 103.64 a litre following the latest revision.
The hike comes even as domestic consumption of both fuels remains firm. Petrol consumption rose 7.21% year-on-year (y-o-y) to 3.644 million tonnes in September 2026 from 3.399 million tonne (MT) a year earlier, according to the Petroleum Planning and Analysis Cell’s (PPAC) flash report. Diesel consumption increased 4.86% to 7.116 MT from 6.786 million tonnes during the same period.
During April-September 2026, petrol consumption rose 7% to 22.673 MT, against 21.189 MT in the corresponding period last year. Diesel consumption increased 4.85% to 47.891 MT, compared with 45.678 MT.
Nayara operates 7,108 petrol pumps across the country. A query sent to the company seeking comments remained unanswered till press time.
The move comes as fuel retailers face mounting losses from elevated global energy prices. Rating agency Icra said petrol and diesel marketing margins had turned negative amid a surge in international product prices and warned of “significant under-recovery on auto fuels with crude above $100/bbl.”
Icra estimated negative marketing margins of around Rs 8 per litre on petrol and Rs 9 per litre on diesel in September. Oil marketing companies (OMCs) were losing about Rs 530 crore a day across petrol, diesel and LPG as domestic retail prices failed to keep pace with international costs.
Nayara had been the first fuel retailer to pass on the surge in global oil prices after the Iran conflict disrupted energy supplies earlier this year. On March 26, it raised petrol by Rs 5 and diesel by Rs 3, taking prices at its outlets to Rs 100.71 and Rs 91.31 a litre, respectively.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL)and Hindustan Petroleum Corporation subsequently began increasing pump prices in May, with cumulative hikes reaching around Rs 7.50 a litre each by late May.
Nayara reversed its March increase on July 1, cutting petrol by Rs 5 and diesel by Rs 3 after international crude prices eased.
The latest hike comes days after the government asked private retailers not to restrict petrol and diesel sales. Nayara and Jio-bp had capped volumes at some outlets amid losses on retail sales. Officials said the gap between retail and bulk diesel prices had encouraged industrial consumers to purchase cheaper fuel from retail outlets.
State-run OMCs control over 90% of India’s 104,137 fuel pumps. Jio-bp, which operates 2,304 outlets, has so far not revised petrol and diesel prices.