RBI Governor Warns of Potential Petrol and Diesel Price Hikes Amid Rising Crude Oil Costs
RBI Governor Says Petrol, Diesel Price Hike Likely If Crude Oil Surge Persists
News 18
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Reserve Bank of India (RBI) Governor Sanjay Malhotra indicated that petrol and diesel prices in India may rise if global crude oil prices remain high. Currently at around $107 per barrel, the ongoing geopolitical tensions are causing inflationary pressures and supply-chain disruptions, prompting concerns over future price adjustments.
- 01RBI Governor Sanjay Malhotra warns of potential petrol and diesel price hikes if crude oil prices stay elevated.
- 02Brent crude oil currently trades at approximately $107 per barrel.
- 03The Indian government and oil marketing companies have shielded consumers from price increases so far.
- 04Malhotra emphasizes the need for fiscal coordination amid supply-chain disruptions.
- 05The RBI projects India's economic growth at 6.9% and inflation at 4.6% for the current financial year.
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Reserve Bank of India (RBI) Governor Sanjay Malhotra cautioned that India may face increases in petrol and diesel prices if global crude oil prices, currently around $107 per barrel, remain high for an extended period. Speaking at a conference in Switzerland, he highlighted the impact of ongoing geopolitical conflicts on inflation and supply chains. Although the government and state-run oil marketing companies have managed to shield consumers from the full effects of rising crude prices, Malhotra suggested that this could change if prices continue to escalate. He noted that excise duties on fuels had previously been reduced, and fuel retailers are currently absorbing some of the increased costs. Malhotra also pointed out that supply-chain disruptions are affecting India, necessitating fiscal coordination to address significant supply shocks. The RBI has projected India's economic growth at 6.9% and inflation at 4.6% for the current financial year, but economists warn that prolonged geopolitical tensions could elevate inflation further while hindering growth. The RBI's next monetary policy meeting is set for June 5.
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If petrol and diesel prices increase, consumers may face higher transportation costs, affecting overall living expenses.
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