Wholesale inflation surges to 42-month high of 8.3% in April as oil shock pushes up fuel, crude prices

India’s wholesale price inflation accelerated sharply to sharply to a 42-month high of 8.30% in April from 3.88% in March, driven primarily by a steep rise in fuel, power, and crude petroleum prices amid ongoing geopolitical tensions in West Asia. 

The spike in wholesale inflation reflects the growing impact of the West Asia crisis and disruptions around the Strait of Hormuz, a critical global oil transit route through which a major portion of India’s crude oil imports pass. 

According to data released by the Ministry of Commerce and Industry on Thursday, inflation in the fuel and power category surged to 24.71% in April, compared to just 1.05% in March. 

Crude oil, natural gas recorded sharpest rise

Crude petroleum and natural gas recorded the sharpest increase, with inflation soaring to 88.06% in April from 51.5% in the previous month. 

The ministry said the rise in wholesale inflation was mainly led by higher prices of mineral oils, crude petroleum and natural gas, basic metals, non-food articles and manufactured products. “Positive rate of inflation in April 2026 is primarily due to increase in prices of mineral oils, crude petroleum & natural gas, basic metals, other manufacturing and non-food articles,” the ministry said in a statement.

Inflation in food articles 

Inflation in food articles remained relatively stable at 1.98% in April compared with 1.90% in March. However, non-food articles inflation rose to 12.18% during the month from 11.5% in March. 

Within the fuel basket, LPG inflation climbed sharply to 10.92% in April from (-)1.54% in March. Petrol inflation jumped to 32.40% from 2.50% a month earlier, while high-speed diesel inflation rose to 25.19% against 3.26% in March. 

Despite a nearly 50% rise in global crude oil prices in recent months, the government has so far kept retail prices of petrol, diesel, and domestic LPG unchanged to shield consumers from the direct impact of higher energy costs. However, prices of commercial LPG cylinders have been increased. 

Analysts said the latest WPI data signals mounting cost pressures across the economy and raises concerns over imported inflation. 

Shashwat Singh said the inflation print came in significantly above market expectations and reflected broad-based wholesale price pressures. 

“India’s WPI inflation for April 2026 surged sharply to 8.30%, significantly above market expectations of 5.50% and versus 3.88% in March, indicating a strong acceleration in wholesale price pressures across the economy,” Singh said. 

He added that the sharp increase was largely driven by higher crude oil prices, fuel and power costs, imported inflation and elevated input prices amid continuing geopolitical tensions in West Asia. “Higher logistics, freight and commodity prices are now increasingly getting reflected in wholesale inflation, which could eventually pass through to consumer inflation as well,” Singh noted. 

According to him, the spike in wholesale inflation also suggests margin pressure for manufacturing and industrial companies if rising input costs cannot be fully passed on to consumers. “Going forward, WPI inflation may remain elevated and volatile due to uncertainty in global crude oil prices, supply-chain disruptions and currency weakness, especially if geopolitical tensions persist,” he added.