Petrol Could Get Costlier: That Fear Alone Is Already Pushing People Into Electric Vehicle Showrooms
Written By: Vikas Kaul
Published: April 4, 2026 at 10:51 AM
Updated: April 4, 2026 at 10:51 AM
Brent crude hit $112 a barrel on March 23, a jump of roughly 60 percent since the Iran war began on February 28. While petrol prices here haven’t yet moved, the fear of an increase is already influencing buyer behavior. Automakers and dealers across India report a noticeable rise in inquiries about electric vehicles (EVs) over the past two to three weeks, coinciding with global energy price spikes.
In the first three weeks of March alone, electric passenger vehicle registrations reached 10,370 units—surpassing the entire month’s figure from the prior year (12,356 units). This momentum suggests EVs are on track to comfortably beat last year’s March sales, with a week remaining.
The current fuel price freeze is temporary, and the longer global crude remains elevated, the harder it becomes for governments worldwide to maintain this policy without absorbing significant fiscal pressure.
For buyers considering petrol versus EV models, this uncertainty is enough to sway their decision. With regular petrol already approaching Rs 100 per litre, a 10-15% hike would make daily running costs considerably more painful.
Running Cost Gap and its Impact on Showrooms
EVs currently cost 70-75% more upfront than comparable petrol vehicles, but they offer an 80% lower per-kilometre running cost. For high-mileage buyers, monthly fuel savings can amount to several thousand rupees. The break-even point on the higher purchase price comes earlier than many anticipate.
While this math is well understood in EV circles, a stable petrol market tends to keep it in the background. A sudden spike, like the current one, brings these calculations into sharp focus, encouraging buyers to reconsider their long-term ownership cost assumptions.
Tata Motors, which offers the widest range of electric passenger vehicles, confirms increased dealer footfall and higher inquiry volumes. The company attributes this trend to lower running costs, home charging convenience, and growing awareness of fuel price uncertainty.
Several carmakers are actively leveraging this moment. VinFast has launched a "Trade Gas for Electric" programme offering exchange bonuses and discounts up to Rs 2.14 lakh on its VF7 model, along with buyback assurances and free charging for early buyers. BYD notes that demand is also being driven by year-end depreciation advantages and tax benefits.