DBS Warns India Fuel Hikes to Fuel Inflation, Delay RBI Rate Cuts

DBS Bank cautions that India's domestic fuel price rises, fueled by global crude volatility and OPEC+ moves, are amplifying inflation pressures and may postpone Reserve Bank of India rate cuts. This builds on RBI Governor Sanjay Malhotra's May 13 warning of potential retail fuel hikes if Middle East conflicts persist, alongside PM Modi's calls for austerity like reduced petrol/diesel use and deferred gold purchases, with gold duties more than doubled to safeguard reserves. These steps ease subsidy burdens but signal bullish oil market pressures, heightened inflation risks, and strains on incomes and corporate margins amid sustained energy costs.