Higher Crude Prices Could Push Asian Paints & HUL Toward Stronger Price Hikes

Brokerage firm CLSA has indicated that companies such as Asian Paints (

) and Hindustan Unilever () may need to consider stronger price hikes if crude oil prices remain elevated, as a significant portion of their input costs are linked to crude-derived raw materials. In the paints industry, nearly 40%–60% of raw material costs are influenced by crude-based derivatives like solvents and resins, making margins sensitive to movements in global oil prices. Recently, Brent crude moved above $80 per barrel and touched around $82.37, while WTI crude traded close to $75 per barrel, driven by supply concerns and geopolitical developments. Following the rise in crude prices, Asian Paints’ stock declined about 3.2% to around ₹2,298, reflecting investor concerns about potential margin pressure. If crude prices continue to stay at elevated levels, companies may have to pass on higher input costs through price increases to protect profitability, though such moves could also impact demand in the consumer and paints segments.