MUMBAI: The end on Thursday of US sanctions waivers for purchases of Iranian oil is likely to hit India's economy hard, increasing fuel costs and quickening inflation, analysts say.
Washington announced last week that the waivers, which have also benefited China and Turkey, would expire on May 2. A barrel of crude recently hit a six-month high of US$75 due to America's sanctions on Iran and Venezuela.New Delhi announced last month that it would acquire additional supplies from elsewhere but analysts say it won't be able to fill the gap left by Iran."No one is going to give charity to India in the oil market. Even Saudi Arabia has no plans to replace Iranian crude in the global market," Madhu Nainan, editor of PetroWatch, told AFP.
With inflation low presently, India's central bank has cut interest rates twice this year to help boost the economy.
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