Bedevilled by high food prices, the Modi-government is now saddled with imported inflation as Brent crude zoomed to a 10-month high of $90.21 a barrel after Saudi Arabia and Russia extended their voluntary supply cuts till December.
Analysts said any populist move to cut fuel excise duties before the assembly elections later in the year could have fiscal implications.
Simultaneously, higher crude prices would garner revenue in the form of windfall taxes for the government.
