Record high fuel prices put India’s economy on slippery track. Here’s why

A sharp rise in domestic fuel prices has raised doubts about India's economic recovery. At the moment, both petrol and diesel are retailing are record high prices. Here is all you need to know.

High fuel taxes combined with a recovery in international crude oil rates have made life difficult for millions of households, putting India’s economic recovery in jeopardy. Retail prices of petrol and diesel are hitting record-high levels almost daily as state-run oil marketing companies (OMCs) continue to revise rates upwards. Petrol price has crossed Rs 100 per litre in multiple states, while diesel is gradually inching closer to the three-figure mark. In fact, buying petrol in major Indian cities such as Mumbai costs almost twice as much as in New York.