INSUBCONTINENT EXCLUSIVE:
Brent broke through $80 a barrel last week for the first time since November 2014.
NEW DELHI: Pump prices of petrol and diesel surged to a record high on Thursday, raising pressure on
the government to find a solution to provide relief to consumers without taking a hit on its finances
India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for about 40-50 per cent of pump prices
The country is particularly at risk from stronger global crude oil prices because it is the third biggest importer of the commodity, buying
about 80 per cent of its oil needs
Oil Minister Dharmendra Pradhan said that the government is in discussion to find a resolution."The Indian government will take the common
Singapore gasoline prices and Arab Gulf diesel prices, which mostly track movements in crude oil prices.Thursday's spike in prices came as
the global Brent crude benchmark fell on expectations of major oil producers boosting output
Brent broke through $80 a barrel last week for the first time since November 2014.Prime Minister Narendra Modi's government, which had
raised taxes on the two fuels when global oil prices were low, is already facing criticism from the opposition for higher retail
prices.Higher prices are denting popularity of the ruling Bharatiya Janata Party, which faces polls in key states later this year and a
national election in early 2019
The party recently suffered a setback in elections in Karnataka.Costlier fuel has a knock-on effect as farmers and manufacturers pass on the
extra cost to consumers, causing inflationary pressure that could strengthen the case for an interest rate hike.While company officials
Thomson Reuters 2018(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a
