New Delhi [India]: In a major relief for consumers, private fuel retailer Nayara Energy has announced a reduction in retail fuel prices, slashing petrol prices by Rs. 5 per litre and diesel prices by Rs. 3 per litre.
The price cut comes against the backdrop of softening international crude oil prices and an easing of geopolitical tensions in West Asia, which had previously pushed global energy markets higher.
On June 30, News Edition reported that government owned oil marketing company Indian Oil is unlikely to slash fuel prices.
Talking to media in New Delhi yesterday, Arvinder Singh Sahney, Chairman and Managing Director of Indian Oil Corporation Limited said that the Indian OMC is yet to receive cheaper oil in the international markets.
READ: No immediate fuel price cut, hints Indian Oil CMD Sahney
According to the latest announcement, the reduction in fuel prices reflects the decline in international oil prices following an improvement in the security situation around the Strait of Hormuz, one of the world's most critical oil shipping routes.
The region had witnessed heightened tensions during the recent conflict involving the United States and Iran, raising concerns over disruptions to global crude supplies and triggering a spike in oil prices.
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With the situation gradually stabilising and the movement of oil tankers through the Strait of Hormuz returning to normal, international crude prices have softened, prompting Nayara Energy to pass on the benefit to consumers.
Under the revised rates, petrol will be cheaper by Rs. 5 per litre, while diesel prices have been reduced by Rs. 3 per litre at Nayara Energy retail outlets.
The development is expected to provide relief to motorists, transport operators and businesses that have been grappling with elevated fuel costs in recent weeks.
While global crude prices had surged during the peak of the West Asia tensions, retail fuel prices in India remained relatively stable compared to several other countries, cushioning consumers from the full impact of the international price rally.
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The latest reduction by Nayara Energy marks one of the first significant price revisions by a private fuel retailer following the recent easing in global oil markets.
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