RBI Malhotra Sees Fuel Price Hike If Elevated Oil Prices Persist: Bloomberg

Reserve Bank of India Governor Sanjay Malhotra has said the government may hike retail fuel prices if elevated crude oil prices persist due to the escalating West Asia conflict, a Bloomberg report said.

Speaking at a conference hosted by the Swiss National Bank and the International Monetary Fund, Malhotra said it was “just a matter of time” before higher global oil prices are passed on to consumers, the report said. 

The comments come as the government continues to shield consumers through excise duty cuts and absorption of higher crude costs by state-run fuel retailers. 

Prime Minister Narendra Modi has also urged citizens to adopt austerity measures, including reducing fuel consumption, postponing foreign travel and cutting discretionary gold purchases to help preserve foreign exchange reserves.

On May 12, the Centre has increased import duties on gold and other precious metals in a bid to curb non-essential imports and reduce pressure on the current account deficit amid rising geopolitical uncertainty and elevated crude oil prices.