With crude oil prices more than doubling in one year and posing a threat to emerging economies, world's third biggest oil consumer India sees the the rates touching $60 a barrel before retreating.
A deal between OPEC and non-OPEC members to cut output for the first time since 2008 has led to a 15 per cent surge in crude oil prices in last two weeks. Brent crude oil prices have more than doubled from a low of $27.88 a barrel recorded in January to hover at $55. The rise not only threatens the fiscal maths of a nation that is 80 per cent dependent on imports to meet its oil needs but also may spur inflation.
A top official said the government does not see any immediate sense of alarm as oil prices have retracted from the 17-month high following the US Federal Reserve raising interest rates for the first time this year.