Rates of petrol and diesel may rise ₹ 25–28 per litre after the ongoing Assembly elections. The main reason for the rise in prices would be the sustained rise in global crude oil prices, which have remained elevated due to geopolitical tensions in West Asia. There has been disruption in the Strait of Hormuz due to which the global supply of crude is affected. India imports 60% of crude, out of which 90% comes through the Strait of Hormuz. While the government has cut excise duty by ₹10 per litre and reinstated windfall export taxes, these measures offer only partial relief. Following blockade of Hormuz, India has shifted to other nations such as Russia to fulfill its demand.
Despite rising global prices, the cost of petrol and diesel remained unchanged in India for the past few weeks. However, this has come at a cost. The surge in crude prices has sharply increased India’s import bill, even as import volumes have declined. The increase in prices could be seen after the election process concludes. However, full and immediate hike is unlikely. Instead, the rise may be seen gradually to balance inflation risks. In Delhi, petrol is priced at ₹94.77 per litre and diesel at ₹87.67 per litre, while in Mumbai, petrol is retailing at ₹103.49 per litre and diesel at ₹90.03 per litre.
