**Title: Private Fuel Retailers Slash Prices, Challenging State-Run OMCs**
Private fuel retailers, including Nayara and Jio-BP, are implementing price reductions and discounts of up to ₹5, benefiting from lower costs associated with Russian crude oil. This trend is putting pressure on state-run oil marketing companies (OMCs) in India, particularly in significant states, as private firms gain market share through competitive pricing.
While government-owned OMCs have maintained their prices since March 2024, Jio-BP and Nayara, which dominate 97% of the private fuel retail market, have reduced prices by as much as ₹5 in certain areas. In addition to retail price cuts, these private sellers are also providing discounts on bulk purchases of petrol and diesel.
Dealers at OMC-operated pumps report that the discounts from private refiners are negatively impacting the market share of Indian Oil Corp. Ltd (IOCL), Hindustan Petroleum Corp. Ltd (HPCL), and Bharat Petroleum Corp. Ltd (BPCL), with private companies becoming increasingly dominant in several tier-II cities.
The states most affected include Gujarat, Maharashtra, and Uttar Pradesh. Jio-BP initiated a “Happy Hour” scheme offering discounts of up to ₹5 per litre during specific times, followed by a similar promotion from Nayara. However, these offers are limited to certain areas and retail outlets, resulting in average discounts of around ₹1-2 per litre across their retail chains.
Nayara recently announced a discount of up to ₹5 per litre for purchases of ₹1,000 or more, emphasizing their commitment to providing savings to customers. Industry experts suggest that the ability of private companies to offer these discounts is largely due to their access to cheaper crude oil from Russia, with both Reliance Industries and Nayara having long-term agreements for Russian oil imports.
