Petrol Could Get Costlier: Electric Vehicles Gain Traction Amidst Fear
Vikas Kaul (April 4, 2026)
Introduction
Brent crude reached a staggering $112 per barrel on March 23, marking a 60% increase since the Iran war commenced on February 28. While Indian petrol prices have remained unchanged, a growing fear of imminent hikes is influencing buyer behavior. Automakers and dealers across India report a noticeable surge in electric vehicle (EV) inquiries over the past few weeks, aligning perfectly with the global energy price surge.
EV Registrations on the Rise
The numbers speak for themselves: during the first three weeks of March 2026, EV passenger vehicle registrations touched 10,370 units. This is a significant leap compared to the entire month of March 2025, when only 12,356 EVs were registered. This trend suggests that the EV market is set to surpass last year’s numbers, even before the end of the month. Such momentum, occurring mid-month without any major promotional drives or new model launches, points directly to the fear of rising fuel prices as a primary driver.
The Global Fuel Price Crisis and India’s Response
Currently, Indian regular petrol and CNG prices remain frozen, but this stability is tenuous. While the government has capped price increases for regular petrol and diesel, 85 countries worldwide have already raised their pump prices since late February. Major markets like the US, Japan, China, Germany, France, the UK, and Australia are among those that have adjusted fuel prices upward. As global crude prices remain elevated, it becomes increasingly challenging to justify a domestic price freeze without incurring substantial fiscal strain.
Shift in Buyer Behavior
For prospective EV buyers who had been undecided between petrol and electric models, this uncertainty is enough to tilt the scales. With regular petrol already approaching Rs 100 per litre, even a 10-15% hike would significantly impact daily running costs.
Running Cost Comparison and Its Impact on Showrooms
EVs currently carry a 70-75% premium over their petrol counterparts in terms of upfront purchase cost. However, their per-kilometer operating expenses are 80% lower than those of petrol vehicles. For frequent long-distance travelers (clocking 1,500 km or more per month), the potential monthly savings on fuel can amount to several thousand rupees. Many buyers underestimate how quickly this savings can offset the higher initial investment for EVs, especially with the current global price situation.
This shift in consumer perception is significant as it brings into focus the long-term financial benefits of EV ownership, previously overshadowed by stable petrol prices.