Fuel prices to rise by up to Rs 28 per liter after polls; Centre responds after report

NEW DELHI: Kotak Institutional Equities, a financial analysis agency, has warned that there may be a huge increase in petrol and diesel prices after the country's assembly elections. The report says that in the wake of the rise in crude oil prices in the international market, it may rise by Rs 25 to 28 per liter.

The present price has not been changed due to political reasons. The report also says that fuel prices are likely to rise after the polls are over, considering the huge financial liabilities faced by oil refining companies.

Global crude oil supply is facing great instability due to conflicts in the Middle East and disruptions in the movement of goods in the Strait of Hormuz. The report says that despite a 15 percent decline in India's oil import volume, the daily import cost has increased by about $ 190 to $ 210 million due to the increase in prices in the international market.

The last phase of the election is on April 29. Therefore, the price revision will be made after this. If the crude oil price remains at $120 per barrel, an increase of up to Rs 28 per liter is inevitable, but the government is likely to implement it in a phased manner. However, these reports have been rejected by the central government. The Ministry of Petroleum and Natural Gas has said in a statement that the government has not held any discussions on fuel prices. The ministry also clarified that the news that has come is baseless.