Analysts are cautioning that markets in India are not prepared for a significant increase in petrol and diesel prices, which could occur due to a surge in crude oil prices amid ongoing tensions in West Asia. A modest hike of ₹5-6 per litre is already anticipated following state elections, but a more substantial increase of ₹10-12 per litre could adversely affect market sentiment. Manoj Bahety, founder of Carnelian Asset Management, stated that while a small hike is expected, a sharper increase could damage market confidence. The Indian government has maintained that there are no immediate plans to raise fuel prices despite the crude oil surge. Analysts from Kotak Institutional Equities suggest that while political factors will likely dictate the timing of any price hikes, the current negative marketing margins for petrol and diesel—averaging ₹-6 to ₹-8 per litre for petrol and ₹-20 per litre for diesel—are pressuring oil marketing companies (OMCs). They further note that the need for price adjustments is critical to mitigate refiners' losses. Overall, the market is bracing for potential changes post the state elections, with analysts emphasizing the importance of political considerations in the decision-making process.