‘India must raise fuel prices to ensure growth’

NEW DELHI: India must raise domestic fuel prices and reform the sector in order to sustain high rates of economic growth, an industry lobby group said on Monday.

Surging global oil prices pose major risks for India, which imports 70 per cent of its oil, and could prevent Asia’s third-largest economy from achieving sought after 10 per cent growth rates.

“The current situation of oil prices creeping to $74 per barrel makes a revision in oil prices in India inevitable,” R Seshasayee, president of the Confederation of Indian Industries, said in a statement.

“Clearly further delay in oil price revision is inadvisable as it would only make the impact that much worse.”

Reuters