Indian consumers face post-election fuel price shock, economy could be hit

Surging global oil prices will pose a first big challenge to India's new government, whoever wins an election now under way, especially as domestic prices have been allowed to lag, meaning consumers are in for a painful surge as they catch up.For oil-import dependent India, higher global prices could lead to a weaker rupee, higher inflation, the ruling out of interest rate cuts and could further weigh on twin current account and budget deficits, economists warned.But compounding the future pain, state-run fuel suppliers and retailers have held off passing on to consumers the ...

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