After Nayara, Another Company Hikes Petrol and Diesel Prices

New Delhi: Just a few days ago, petrol and diesel prices were hiked at Nayara Energy’s fuel pumps. Now, another company has raised the prices of petrol and diesel in India. Shell India has increased petrol and diesel prices effective April 1st. Citing crude oil prices remaining above $100 per barrel, the private fuel retailer has raised fuel rates to offset its losses. In Bengaluru, petrol prices have been hiked by ₹7.41 per liter. Additionally, diesel prices have seen an increase of ₹25 per liter.

Consequently, the price of regular petrol now stands at ₹119.85 per liter, while the ‘Power’ variant is priced at ₹129.85 per liter. Due to varying local taxes, fuel prices at these pumps may differ slightly in other cities. The hike in diesel prices has been even more substantial, amounting to ₹25.01 per liter. Regular diesel is now priced at ₹123.52 per liter, and premium diesel at ₹133.52 per liter.

Could Prices Rise Further?
According to a report by Moneycontrol, the primary reason for this hike is the surge in oil prices triggered by the conflict involving Iran. It is estimated that diesel prices could rise even further, potentially reaching ₹148 to ₹165 per liter. However, no official announcement regarding this has been made yet.

The report notes that private fuel retail companies are under pressure because public sector oil companies have largely kept their prices unchanged, despite the rising cost of crude oil. Unlike their public sector counterparts, private oil retailers do not receive government compensation; consequently, they are compelled to pass the burden of rising costs onto their customers.

Nayara Had Also Hiked Prices
Just a few days prior, Nayara Energy had also increased its petrol and diesel prices. Petrol prices were hiked by ₹5 per liter, and diesel prices by ₹3 per liter. This company operates 6,967 petrol pumps across the country. Meanwhile, Shell India has a total of over 325 petrol pumps located in Karnataka (particularly Bengaluru), Maharashtra, Gujarat, Tamil Nadu, Telangana, and Assam.

How much have crude oil prices risen?
It is worth noting that India imports approximately 88 percent of its crude oil requirements. Consequently, fuel prices remain sensitive to disruptions in supply. Amidst escalating conflicts in West Asia, concerns regarding shipments passing through the Strait of Hormuz have intensified. Since February 8—when the United States and Israel launched attacks on Iran—Brent crude prices have surged by as much as 60 percent.