Good news, these companies are selling petrol-diesel at a discount of up to Rs 5, Buy it now 

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By

Sweta Mitra

Private fuel retailers are gaining market share at the expense of public sector companies by reducing petrol and diesel prices. Companies such as Jio-BP and Nayara are passing on the advantages of lower Russian crude oil prices to their customers, while state-owned oil firms have maintained fuel prices since March 2024.

Notably, Jio-BP and Nayara, which dominate 97% of private fuel retail sales, have implemented price cuts of up to Rs 5 in certain regions. In addition to lowering retail prices, these private companies are also providing discounts for bulk purchases of petrol and diesel.

Dealers operating under oil marketing companies have reported that the discounts from private refiners have significantly impacted the market share of government-owned firms. Private companies are increasingly becoming prominent players in numerous small towns.

 

The offers are restricted to specific areas and retail locations

According to Nischal Singhania, president of the Delhi Petrol Dealers Association, the states most affected are Gujarat, Maharashtra, and Uttar Pradesh. Jio-BP initiated a Happy Hour promotion, providing discounts of up to Rs 3 per litre during designated times, which was soon followed by Nayara with a similar initiative. However, these promotions are confined to select areas and retail outlets.

On average, the discounts offered in their retail chains are likely around Rs 1 to Rs 2 per litre. Jio-BP initiated a price reduction with a Rs 3 per litre discount on petrol back in October, and now Nayara has jumped on board as well. On Monday, Nayara Energy, which is partly owned by the Russian oil giant Rosneft, revealed discounts of up to Rs 5 per litre.

State-owned companies are seeing record profits

Experts indicate that state-owned refiners hold a significant share of the market, meaning their financial results won’t be immediately affected. However, if private companies pursue aggressive expansion strategies, it could impact state-owned firms more, especially since they have enjoyed record profits over the past two years thanks to low-cost Russian oil and stable retail prices.

 

Government firms lead the market

India has over 90,000 petrol stations, with government companies holding the largest market share. Among private firms, Nayara boasts the biggest retail network, operating around 6,500 pumps and planning to add 400 more this year. The three main private refiners in India are Nayara, Jio-BP, and Shell.



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