India’s government has introduced a fuel relief as prices at the pump rise inexorably, following soaring international benchmarks, Indian media report , citing the official statement by Finance Minister Arun Jaitley. The move was made after consultation with local oil companies, which agreed to reduce prices by US$0.034 (2.5 rupees) per liter of gasoline and diesel, of which they will absorb US$0.014 (1 rupee) per liter of fuel, and the government will shoulder the rest by cutting excise duties on fuels. The Finance Minister said, however, that the higher oil prices were not the only factor that prompted the decision: India was also getting hit by higher U.S. interest rates, although he added that only the country’s current account deficit was swelling under the twin pressure of prices and rates, while the national fiscal deficit was enjoying the positive effects from direct tax collection rates. The fuel price cut […]