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Why rise of crude oil prices is bad news for India

With India importing 157.5 crore barrels of crude annually, a dollar increase in prices on a permanent basis would increase the yearly bill by roughly Rs 10,000 crore.

The rise in crude oil prices, that is hovering around $64 (Rs 4,200) a barrel (for Brent) on the back of political upheaval in the Saudi kingdom and voluntary production cuts by OPEC, is bad news for India. India, which imports most of its crude oil, had been the biggest beneficiary of low crude oil prices that had been in the range of $50-$55 (Rs 3,270-Rs 3,600) a barrel for the past couple of years.

This had helped India maintain

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