Crude oil prices have surged to a three-month high, with Brent rising nearly $10 per barrel since the government slashed duties on petrol and diesel last month to lower prices and cool in ation.
The rally in crude prices has occurred despite forecasts of a sharp global economic deceleration.
With the trade deficit already at record highs, elevated crude prices are a significant risk to India’s growth and macroeconomic stability.
India imports more than 85% of its crude oil needs.
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