The common man will get a big shock! Will petrol and diesel become costlier by ₹28 as soon as the elections are over? Kotak’s report gave sleepless nights

A news has come out regarding the prices of petrol and diesel in the country, which can completely spoil your pocket budget. If you are thinking that the prices are stable now, then be careful. The latest report of domestic brokerage firm ‘Kotak Institutional Equities’ has claimed that fuel prices will rise as soon as the assembly elections are over. ₹25 to ₹28 per liter There could be a huge increase of up to Rs. Due to rising prices of crude oil in the global market and increasing burden on government oil companies, it now seems impossible to postpone this decision.

Oil companies suffer losses of Rs 27,000 crore every month

The prices of petrol and diesel in India may increase at the speed of rocket after the elections. According to the report, crude oil prices in the international market are around $120 per barrel Has reached the level of. Because of this, government oil companies spend about Rs 27,000 crore Are suffering huge losses. Although the government has tried to provide relief to the public with steps like ₹10 cut in excise duty and windfall tax, these measures are only temporary. In view of the poor financial condition of oil companies, increasing prices has now become a compulsion.

War on crude oil and supply crisis

The ongoing geopolitical tensions around the world have also added fuel to the fire. The ongoing conflict in West Asia (Middle East) and especially ‘Strait of Hormuz’ The obstacles created in the (Strait of Hormuz) have badly affected the oil supply chain. The result of this is that crude oil remains expensive in the international market. Although India has reduced oil imports by 13-15%, due to high prices the country’s total import bill has increased on a daily basis. $190-210 million Has increased to. That means we are buying less oil, yet paying more than before.

Fear of all-round attack from inflation

Kotak’s report also indicates that the government may not increase prices all at once due to fear of inflation, rather it can be implemented gradually. But if this increase of ₹ 25-28 is fully implemented, then the price of petrol in big cities will ₹120 per liter Can go beyond. Its effect will not be limited to just the tank of your vehicle. Due to costlier fuel, the cost of transportation and logistics will increase, which will have a direct impact on the prices of everyday items like vegetables, milk and ration. Overall, there are indications of a ‘tsunami of inflation’ for the common man after the elections.