THE COST OF HIGH FUEL PRICES

➘ Possibly higher inflation. Petrol and diesel have a combined weight of 4.69 per cent in the Wholesale Price Index and 2.34 per cent in the Consumer Price Index

➘ Higher transportation costs, which in turn will push up prices of essential commodities like fruits and vegetables

➘ Bearing on the RBI’s decision on lowering interest rates. High inflation would mean a continued freeze on interest rate cuts