Business Standard

Indian consumers face post-election fuel price shock, economy could be hit

Higher oil prices will mean Asia's third largest economy is likely to see growth of less than 7 percent rate this fiscal year, economists said

Feeling the fuel cost pinch? Here's why petrol should be cheaper by Rs 4

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Surging global oil prices will pose a first big challenge to India's new government, whoever wins an election now under way, especially as domestic prices have been allowed to lag, meaning consumers are in for a painful surge as they catch up.

For oil-import dependent India, higher global prices could lead to a weaker rupee, higher inflation, the ruling out of interest rate cuts and could further weigh on twin current account and budget deficits, economists warned.

But compounding the future pain, state-run fuel suppliers and retailers have held off passing on to consumers the higher prices during a staggered general election,

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First Published: Apr 26 2019 | 11:45 PM IST

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