NEW DELHI: While active government intervention has contained spillover to domestic oil prices, policymakers need to be vigilant and cautious of the direct and indirect impact of the evolving global crude price dynamics through continuous assessment, given India’s increasing dependence on crude oil imports, the Reserve Bank of India (RBI) has stressed.
In this regard, government policies would play a pivotal role in containing the impact, said the RBI in a paper titled ‘Revisiting the Oil Price and Inflation Nexus in India’ in its latest Bulletin.