Nayara Energy Cuts Fuel Prices as India's Crude Costs Drop

Fuel prices in India and Nepal declined across several sectors starting July 1, 2026, following a drop in international crude oil prices. Average crude import prices for India fell to $68.86 per barrel on June 26, down from a peak of $157.04 in March. This decline followed a 14-point memorandum of understanding between the United States and Iran and the reopening of the Strait of Hormuz.

Nayara Energy, India's largest private fuel retailer, reduced petrol prices by ₹5 per litre and diesel by ₹3 per litre across 7,000 stations, marking the first retail pump price cut in over two years. In contrast, state-owned retailers including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum maintained existing petrol and diesel rates to recover losses incurred during the West Asia conflict. However, these state-run companies did reduce the price of 19-kg commercial LPG cylinders by up to ₹183.50 and cut Aviation Turbine Fuel (ATF) prices by ₹5 per litre.

Regional impacts extended to Nepal, where the Nepal Oil Corporation reduced petrol by Rs 20 per litre and diesel by Rs 30 per litre following revised purchase rates from Indian Oil Corporation. In Madhya Pradesh, Nayara pumps further eliminated price premiums to align with government-run rates.

Opposition leader Mallikarjun Kharge and the All India Motor Transport Congress urged the government to pass lower crude costs to consumers. Petroleum Minister Hardeep Singh Puri defended the pricing, stating the government protected consumers from global energy shocks and that prices had not effectively increased in real terms.