MUMBAI: A possible increase in fuel prices due to the US sanctions on Iranian crude exports can have adverse impacts on the current account deficit (CAD), the rupee and inflation, warns a report.
The country meets a tenth of its crude demand from Iran — making it the third largest customer for the Persian country — and the “immediate challenge” is to find alternate suppliers who will be able to deliver it at competitive prices as Tehran offers after May 2, Care Ratings said on Tuesday.
It can be noted that the US had on Monday decided to do away with exceptions on sanctions to countries like India who are importing oil from Iran from May 2. Following this, the government said it will stop shipments from that Gulf nation which has one of the largest crude reserves in the world. China, Japan and India are the biggest three customers for Iran.
