As assembly elections conclude in India, speculation grows regarding a potential hike in petrol and diesel prices. The International Monetary Fund (IMF) has urged the Indian government to align domestic fuel prices with soaring global crude oil prices, which have remained above $100 per barrel, driven by geopolitical tensions. The IMF's director for Asia Pacific, Krishna Srinivasan, emphasized that while the government has cut excise taxes and provided subsidies, it cannot sustain these measures indefinitely. He warned that preventing price adjustments could exacerbate the crisis by keeping demand elevated, leading to even higher global prices. The IMF's stance highlights the need for targeted cash transfers to support low-income households rather than broad subsidies that suppress price signals. This approach aims to temper demand and stabilize the market. Meanwhile, the Reserve Bank of India (RBI) has countered the IMF's analysis, asserting that India's fiscal position is relatively strong, with gross debt projected to decline from 83.4% of GDP in 2026 to 77.7% by 2031. The ongoing energy crisis poses significant risks to the global economy, with sustained high oil prices threatening to push the world closer to recession if disruptions continue.