India's Petrol and Diesel Prices May Soar After State Elections

Petrol and diesel prices in the country remain stable as of today, 24 April. However, according to Kotak Institutional Equities, domestic petrol and diesel prices may see a steep hike of 25-28 rupees per litre after the ongoing state elections are over by 29 April. The company has warned that the surge in global crude oil prices is putting financial pressure on refiners. In a recently released crude sector note, the brokerage said that the current freeze on retail fuel prices is becoming increasingly difficult to maintain for longer now as crude oil prices remain high and Indian refiners are incurring heavy losses. The brokerage estimates that refiners are currently incurring an additional burden of about ₹270 billion per month due to rising crude oil import costs, even if excise duty cuts and limited changes in other fuel prices are taken into account. The report points out that political turmoil, the recent oil price volatility in West Asia, have led to higher oil prices in India.