GOI should let the economy adjust to new energy market realities, and raise pump prices. Lower domestic fuel consumption will also mean less dollar demand & help shore up the rupee
Well into the third month of the Iran war, earlier assumptions of a short-lived conflict, have now been negated. Over the past week, even as physical shortages of oil seem to have eased, oil’s price for March 2027 delivery has risen nearly 10% to $83/barrel. It is now prudent to start measuring the impact on the economy, and for policy to begin adjusting.