India could see a Petrol Diesel Price Hike if global crude oil prices remain high due to the ongoing Middle East conflict. The warning came from RBI Governor Sanjay Malhotra.
Speaking at an international conference in Switzerland, Malhotra said the government may eventually pass higher oil costs on to consumers. He explained that if the crisis continues for a long time, a Petrol Diesel Price Hike may become unavoidable.
India depends heavily on imported crude oil. Rising global oil prices increase the country’s import bill and create pressure on inflation and the rupee. Economists say prolonged geopolitical tensions in West Asia could push fuel costs higher across the country.
For now, the government and state-run oil companies are absorbing some of the rising costs to keep retail fuel prices stable. However, experts warn that maintaining this price freeze may not be possible if crude oil prices remain high for a longer period.
