Spike in crude oil prices: What does it mean for India?

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Crude oil prices have hit their highest marks recently after 2014. The surge comes right after the OPEC+ countries’ decision to gradually increase supplies. Concerns about the impact on inflation, currency, and input costs across industries prompted a drop in key stock market indices following a recent increase in global crude oil prices above the $80-per-barrel mark. The OPEC+ grouping’s supply limits have also kept international oil prices high. The oil-producing economies have only signalled modest increases in production, which has resulted in a surge in gas prices.

Because of the spike in crude prices, India’s petrol and diesel prices have reached all-time highs. In India, the price of petrol and diesel is based on a 15-day rolling average of international prices. High taxes imposed by the central and state governments have also contributed to much higher retail prices.