Tough road ahead for govt as weak rupee pushes fuel prices to record high

Rising fuel costs may fan consumer prices and force the inflation-targeting RBI to add to its two interest rates hikes this year -- a decision that can be both unpopular as well as affect growth

India’s growth monikers -- the world’s fastest-growing major economy and the fastest-growing oil user -- might make for good headlines, but when juxtaposed with the less-flattering description of its currency they pose a problem for Prime Minister Narendra Modi.

The rupee, Asia’s worst performer so far this year, has fueled petrol and diesel prices to a record high and fanned public displeasure with general elections less than eight months away. It prompted Modi’s ruling Bharatiya Janata Party to say on Saturday the government will soon come up with an action plan to rein in fuel prices.

The government has so