Nayara Energy aims to leverage its pan-India network of more than 6,700 retail fuel outlets to maintain and expand business momentum as the latest round of sanctions by the European Union (EU) drag down export earnings.
The oil marketing company (OMC), which accounts for around 7 per cent of India’s fuel retailing network, is pinning hopes on rising domestic consumption of diesel, petrol and jet fuel to compensate for loss of export cargoes, sources said.
It is also exploring strategies such as selling its refined petroleum products to other domestic OMCs as sanctions are making it difficult to book shipping vessels for transporting the cargoes, added one of the sources.
Crude oil purchases
The 405,000 barrels per day (b/d) refinery can produce high quality Bharat Stage (BS VI) compliant fuels. Nayara was able to increase its crude oil purchases last month after it failed to get cargoes from West Asia in August due to EU sanctions, announced in July 2025.
Nayara faced compliance, shipping, payment, and crude import hurdles post sanctions with operations in August–September 2025 curtailed and exports sharply lower year-on-year, global real time data and analytics provider Kpler told businessline last week.
Domestic focus
Domestic focus makes sense as India’s diesel and petrol demand is increasingly aided by rising industrial and domestic consumption. “Around a third of Nayara’s petrol and diesel dispensing stations are in tier 2 and tier 3 towns which will benefit it as energy consumption in these towns is inching up and will rise further as rising affluence is leading to higher purchases of personal vehicles. E-commerce penetration is also boosting logistics,” an analyst said.
India focus
Nayara’s FY25 annual report also underscores the India focus. For instance, Nayara’s Executive Chairman Prasad K Panicker in his message to stakeholders in the report, said: “As we look to the future, we are committed to securing India’s energy future through strategic investments in enhancing scale, reliability and self-sufficiency.”
It owns and operates the 20 million tonnes per annum (mtpa) Vadinar refinery, which has a Nelson Complexity Index of 11.8 and is capable of processing some of the toughest crude oil grades. As per S&P Global Commodity Insights’, Nayara expanded its retail footprint to 6,760 fuel pumps over the course of a year (July 2025), supporting higher domestic sales. In FY24, 82 per cent of diesel and 65 per cent of gasoline production was sold domestically.
Sergey Denisov, Nayara’s Chief Executive Officer, who replaced Alessandro des Dorides in July 2025, said: “While navigating global headwinds, our focus remains firmly on harnessing the immense opportunities within the domestic market, ensuring our growth is intrinsically linked with the nation’s progress.”
