Operators of truck fleets across India are bracing for fuel rationing and the first significant increase in diesel prices in years, a move that would end a period of relative stability.
The world's third-largest oil importer is among the countries most exposed to the trade upheaval in West Asia, but it has not faced the widespread price hikes at the pump seen elsewhere.
A hike by government-owned refiners would add to inflationary pressures weighing on the economy, with truck drivers already reporting widespread informal rationing.
“We are going to see an increase in diesel prices after the elections,” said Shailendra Gupta, an executive member at All India Motor Transport Congress, a truckers' lobby group.
Pumps have withdrawn discounts they used to give earlier on monthly purchases above a certain threshold, he said.
Private players have already raised pump prices and rationed supplies, but any widespread increase in retail fuel prices, coupled with a weak exchange rate, would feed through to the wider economy.
