 Summary of this article
- Sanjay Malhotra warned that India may eventually have to raise fuel prices if the Middle East conflict continues.
- Crude oil prices have risen nearly 38% since disruptions began in the Strait of Hormuz.
- The government has so far avoided passing higher fuel costs to consumers despite mounting losses for oil marketing companies.
Speaking at a conference in Switzerland on Tuesday, Reserve Bank of India Governor Sanjay Malhotra said that the government may have to hike petrol and diesel prices if the Middle East crisis continues for a longer period.
The Middle East conflict has led to a blockade of the Strait of Hormuz, a key shipping lane through which nearly 20% of the world’s fuel supply passes. The blockade has disrupted oil and gas supplies which have pushed energy prices higher.
India is highly dependent on imports to meet its energy supply, Malhotra said, adding that prolonged disruptions are beginning to impact India.
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BY Outlook News Desk |
