The US government’s sanctions on oil imports from Iran and the subsequent rise in crude oil prices are driving up the risk of higher inflation in the country.
The US Government had last week made it clear that India needs to cut oil imports from Iran to zero to avoid sanctions.
Crude oil imports have been growing in double digits in value terms (at about 15 per cent during 2017-18 compared to the previous year as per Govt data), and the rise in price will have a sure impact on domestic economy in a big way as the increase will be passed on the consumers.
