Fuel Price Hike Likely: Petrol, Diesel Prices May Rise INR 25-28 per Litre After Assembly Elections 2026, Says Report
Petrol and diesel prices in India may rise by INR 25-28 per litre after ongoing elections, according to a Kotak Institutional Equities report. The increase is linked to high crude oil prices and supply disruptions. Despite rising import costs, retail fuel prices have remained unchanged, increasing pressure on refiners and making a post-poll hike likely.
Petrol and diesel prices in India could see a sharp increase after the ongoing Assembly elections, with Kotak Institutional Equities estimating a potential hike of INR 25-28 per litre. The projection comes amid sustained high crude oil prices and supply constraints affecting global markets.
The report suggests that while fuel prices have remained unchanged so far, mounting pressure on refiners may necessitate a revision once the electoral process concludes. US-Iran Tension: Crude Oil Prices Near USD 100 Again As Strait of Hormuz Remains Constrained.
Fuel Hike Price Likely: Global Oil Volatility Driving Pressure
Oil markets have remained volatile due to disruptions in the Strait of Hormuz linked to tensions in West Asia. Although there were brief signs of easing during a temporary ceasefire, renewed instability has kept crude supplies tight.
Kotak also highlighted a growing gap between crude futures and physical markets, indicating ongoing supply stress and limited short-term relief. What Is E85? India’s Draft Rule for 85% Ethanol Fuel Could Change Cars Soon.
India’s crude import bill has increased significantly, even as import volumes declined by 13–15 per cent. Estimates suggest the country is now paying an additional USD 190–210 million per day due to higher crude prices.
Despite this, retail fuel prices have not been adjusted, leading to rising financial strain on oil marketing companies. The brokerage estimates an incremental burden of around INR 270 billion per month on refiners.
Timing Linked to Elections
According to the report, the case for a price hike is strong but the timing is likely influenced by political considerations. With the final phase of voting scheduled for April 29, any revision in fuel prices is expected after the elections conclude.
While the estimated increase is INR 25–28 per litre based on crude prices near USD 120 per barrel, analysts say the actual hike may be implemented gradually to manage inflationary impact.
With global crude oil markets remaining uncertain, fuel prices in India are expected to adjust upward in the coming weeks. The extent and pace of the increase will depend on both international price trends and domestic policy decisions.
(The above story first appeared on LatestLY on Apr 22, 2026 09:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).