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Nayara Energy: Nayara Energy share in Indian bulk diesel business expands over 4x


Rosneft-backed refiner Nayara Energy has more than quadrupled its share in the Indian bulk diesel business in a year to 8.5%, according to the industry sales data for August.

Nayara’s share was 1.9% in August 2022 and 2.7% in the same month of 2021. Reliance Industries’ 13.2% share in August is also a sharp improvement over 9.1% in 2022 and 9.3% in 2021. The private sector doubled its share to 21.7% in a year as state-run companies’ share declined to 78.3% from 89%. The overall bulk diesel sales grew 115% in August from a year earlier, compared to a growth of 5% last year.

This was primarily because fuel retailers had allowed many bulk customers such as state transporters to buy fuels from their retail outlets for several months last year, as bulk prices were higher than retail rates. So, a lot of what could have been bulk sales last year were reflected in retail sales.

Overall diesel sales – retail as well as bulk – rose 5% in August over last year. Retail sales for all private and public companies put together fell 2.3% this August. Last year, the retail sales growth was 21.5%, reflecting the shift of bulk customers to retail outlets. Private players’ share in the diesel retail market expanded to 8.57% this August, from 2.47% last year. It’s still lower than the 10.84% in August of 2021.
The private sector had shrunk its retail sales last year after state-run companies chose to sell fuels at below-market rates. But after the markets normalised, private fuel retailers boosted sales in a bid to claw back their shares. Private players had a share of 8.2% in the petrol retail market this August, compared to 6.6% last year and 10.2% in 2021. Reliance-BP’s share in August was 2% while Nayara’s was 5.6%.


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