Reserve Bank of India on Monday warned of inflationary pressures as domestic oil prices were yet to reflect the surging global oil prices that are close to $100 per barrel.
"Since pass-through of higher international oil prices to domestic prices remains incomplete, inflation remains suppressed," Reserve Bank said in its Macroeconomic and Monetary Development Review released in Mumbai.
RBI said domestic prices of petrol and diesel have remained unchanged since Februar
y 2007, when prices were last cut, even as international crude prices (Indian basket) increased by almost 56 per cent from $56.6 per barrel in February 2007 to $88.2
by the year end.
Furthermore, kerosene and LPG prices have also not been raised since April 2002 and November 2004, respectively.