Petrol prices just saw their first big jolt—Nayara’s ₹5 hike breaks the long freeze. Will Indian Oil follow next? Here’s what rising global tensions mean for fuel prices across India.
On March 26, 2026, Nayara Energy became the first major fuel retailer in India to end the long period of stable petrol and diesel prices. The company increased prices immediately because global oil costs have been rising due to the ongoing conflict in the Middle East.
Details of the Price Increase
Nayara Energy raised petrol prices by ₹5 per litre. In some states, the increase went up to ₹5.30 per litre due to local VAT and other taxes. Diesel prices were increased by ₹3 per litre. These new prices started at all its petrol pumps from Thursday.
Nayara Energy’s Market Presence
Nayara Energy operates 6,967 petrol pumps, making it the largest private fuel retailer in India. This is about 7% of the country’s total 102,075 fuel stations. The company is mainly owned by Russia’s Rosneft.
Why Nayara Increased Prices Now
The company raised prices to cover part of the sharp increase in its costs. International crude oil prices have risen nearly 50% since February 28, 2026, and briefly touched USD 119 per barrel. This happened after military strikes by the US and Israel on Iranian facilities, followed by Iran’s response, and reported attacks on major energy locations such as Iran’s South Pars gas field and Qatar’s Ras Laffan industrial city. These disruptions also affected areas near the Strait of Hormuz, which is a key route for global oil transport.
Difference Between Private and Government Companies
Unlike Nayara, government-owned companies — Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd — which together control about 90% of the fuel market, have not increased prices of regular petrol and diesel.
On March 20, 2026, these companies only increased prices of premium petrol (such as XP95 and Power) by ₹2.09 to ₹2.35 per litre and raised bulk industrial diesel prices by around ₹22 per litre.
For example, in Delhi, regular petrol remained at ₹94.77 per litre and diesel at ₹87.67 per litre. Jio-bp, a joint venture between Reliance and BP with 2,185 outlets, also did not increase prices of regular fuel.
No Government Support for Private Retailers
Private fuel retailers do not receive any government compensation when they keep prices low despite rising crude oil costs. According to sources quoted by PTI, Nayara was facing growing losses, leaving it with no option but to increase prices on its own.
Impact Across Cities on March 26
After the hike, petrol prices crossed ₹100–107 per litre in several cities, including Hyderabad, Kolkata, Mumbai, Bangalore, and Chennai.
In Bhopal, petrol increased from ₹106.74 to ₹111.74 per litre. Diesel prices also went up at Nayara outlets.
Government officials and oil companies said that Indian refineries are still running at high capacity. Around 70% of India’s crude oil imports now come from regions like West Africa, Latin America, and the US, reducing dependence on the Strait of Hormuz. They also confirmed that there is no fuel shortage and that petrol pumps across the country are well-stocked.
People were advised not to believe unverified social media rumors about fuel shortages. However, there were some reports of long queues at petrol pumps in cities like Hyderabad and temporary increases in ride-hailing fares due to public concern.
Nayara Energy has not released any official public statement yet, and all confirmed details are based on sources with direct knowledge of the situation.
This price increase is the first clear sign of how the Middle East conflict is affecting everyday fuel prices for Indian consumers, especially at private petrol pumps. It also highlights the difference in how private and government-owned companies manage pricing in a market that is technically deregulated but still politically and economically sensitive.
