Today, on April 24, petrol and diesel prices remain stable across the country. However, according to Kotak Institutional Equities, after the ongoing state elections end on April 29, domestic petrol and diesel prices may see a steep rise of ₹25–28 per litre. The firm warned that financial pressure on refiners is increasing due to the surge in global crude prices.
Increasing burden on refiners
In a recent sector note, the brokerage said it is becoming increasingly difficult to maintain the current cap on retail fuel prices, as crude oil prices remain high and Indian refiners are incurring huge losses. The brokerage estimates that due to the rising cost of crude oil imports, refiners are currently facing an additional monthly burden of about ₹270 billion—even after taking into account excise duty cuts and limited adjustments in prices of other fuels.
rapidly increasing import bill
The report notes that geopolitical turmoil—particularly in West Asia—has disrupted the global oil market, leading to a sharp increase in crude oil prices. In recent weeks, the cost of India’s crude oil imports has increased significantly; As a result, despite the decline in import volumes, the country’s total import bill has increased rapidly. While many countries have already passed on these increased costs to consumers, retail petrol and diesel prices in India remain unchanged.