Oil spike heightens India’s challenge | Economic Times

Crude oil extended gains on Wednesday, almost touching $75 a barrel on rising global demand. This persistent uptrend over the past two months has pushed domestic petrol and diesel prices to record levels. A litre of petrol now costs more than Rs 100 in several areas. In Sri Ganganagar, Rajasthan, which has among the priciest fuel rates in the country, petrol costs Rs 107.8 and diesel Rs 100.5 per litre. This has led to calls for cutting steep fuel taxes. 83594158 83594165 835941684. Cooking gas prices are up 36% or Rs 216 per cylinder in a year, though stable for the past two months5. Higher taxes also add to burdenTaxes comprise 57% of petrol price and 51% of diesel price in Delhi.6. Implications for IndiaHigher fuel prices add to inflationary pressures: CPI up 6.3%, WPI up 12.94% in May.Consumers’ buying power gets eroded, affecting overall demand and economic growth.High prices raise import bill, widen current account deficit. 83594186