International oil prices retreated from an over seven-year high but was still above USD 100 a barrel and continue to pose threat to India’s inflation rate and current account deficit.
While there are no supply concerns as the oil route remained open, consumers will feel the pinch when PSU oil firms start passing on the increase in international rates through a revision in petrol and diesel prices, which have been on a pause for over three-and-a-half-months in view of elections in Uttar Pradesh and four other states.
The government is “closely monitoring the situation” and will “take appropriate steps as and when required”, a top official said.
