How Petrol, Diesel price Hikes, BoP Situation Are Making Things Difficult For RBI, Govt & You

| May 28, 2026, 08:38:01 PM | TOI.in
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India is facing mounting economic pressure as the US-Iran conflict pushes up crude oil prices, weakens the rupee and fuels inflation fears. We break down how rising petrol and diesel prices impact household budgets, food inflation, transport costs, RBI policy decisions and India’s Balance of Payments. Why has Chief Economic Advisor V Anantha Nageswaran called this a “live balance of payments stress test”? Can the RBI control inflation without hurting growth? And how serious are the risks to India’s economy if oil prices remain elevated?

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