In between the global tensions and fuel disruptions, Nayara has become the first major fuel retailer in India to hike the prices, breaking the long-standing fuel price freeze. The company has increased prices up to Rs 5 per litre effective from 26th March 2026.
West Asia War Intensifying The Price Hike
From Southeast Asia to the Indian subcontinent, the energy crunch caused by the restriction of oil and gas through the Strait of Hormuz is triggering emergency responses, fuel shortages, and soaring prices. Supply chain disruptions are forcing governments into crisis mode, impacting everything from electricity generation to public transport.
The current global fuel supply disruptions due to the West Asian crisis led to crude oil crossing USD 115 per barrel when the war news broke out. Check the graph below.
Source: Tradingeconomics.com
While there was skepticism that the US and Iran could reach common ground and end the war, the deal does not look to materialise soon, keeping the crude oil price above USD 95 per barrel. These price hikes can be directly linked to attacks on energy infrastructures in the Middle East, including attacks on Iran’s South Pars gas field and retaliation targeting Ras Laffan Industrial City in Qatar.
Nayara’s Petrol And Diesel Hike
India’s largest fuel retailer, Nayara, has raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre. This applies to all 6967 petrol pumps across the country. The effective rate may vary based on the state-levied VAT. Related to this, Nayara issued a statement quoting, "The ongoing disruption in crude oil supplies has created unprecedented challenges in the industry, impacting several aspects of fuel distribution and availability.”
Although Nayara has adjusted its rates, other industry players, such as Jio-BP (a joint venture between Reliance Industries and BP Plc.), have maintained their current pricing.
Premium Patrol Increase By Oil Companies
Many public sector oil companies, like Hindustan Petroleum (HPCL) or Indian Oil, have not changed the price of regular petrol. However, these oil companies have raised their premium petrol prices by Rs 2.09 to Rs 2.35 per litre.
Branded fuels like XP95 and Power have seen rates move from Rs 111.68 to Rs 113.77 per share.
India Panic Buying Amid Shortage Rumours
Despite assurance from the government, people were seen flocking to the petrol pumps, like in the cities of Lucknow, Hyderabad, and Jammu. India, being one of the largest oil importers, relies on foreign suppliers for more than 85% of its oil needs, with Russia being its biggest oil supplier.
In this panic, the local authorities in Jalna, Maharashtra, introduced a cap on the sale of petrol and diesel.
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