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Markets are not fully pricing in fuel-led inflation yet, say analysts

Retail prices of petrol and diesel had been on a freeze since October 2021 when crude oil prices were hovering around $80 a barrel

Photo: Bloomberg
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Photo: Bloomberg

Puneet Wadhwa
Markets are not fully factoring in the impact of fuel price-led inflation at the current levels, believe analysts, who see up to 8 – 10 per cent correction in frontline indices once the inflationary pressures kick in.

After a hike of Rs 25 per litre in diesel prices for bulk buyers over the weekend, the government has raised petrol and diesel prices by 80 paise a litre each, while domestic cooking gas (LPG) prices were increased by Rs 50 per cylinder, ending over four-and-half month election-related hiatus in rate revision amid rising crude oil prices.

“The market is

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First Published: Mar 22 2022 | 10:25 AM IST

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