'It's a matter of time': RBI Governor Sanjay Malhotra says govt may have to hike fuel price if West Asia crisis prolongs

'India is highly dependent on imports of energy and fertilizers; current disruptions are beginning to impact the country'

The government may have to hike petrol and diesel prices if the West Asia crisis continues for a longer period, according to Reserve Bank Governor Sanjay Malhotra.

Highlighting that the government has been rather fiscally prudent and on the path of fiscal consolidation, Malhotra said India is highly dependent on imports of energy and fertilizers, adding that the current disruptions are beginning to impact India.

The RBI Governor was speaking at a conference in Switzerland on Tuesday.

The West Asia conflict and the blockade of the Strait of Hormuz have disrupted oil and gas supplies, pushing energy prices higher.

Referring to the crisis, the RBI Governor said if it continues for a longer period of time, then it is a "matter of time that the government will actually pass on some of these price increases".

The government has not increased the retail prices of petrol and diesel despite the West Asia conflict that started on February 28.

Prime Minister Narendra Modi has called for reducing the use of fuel and consumption of edible oil, among other austerity measures, to save foreign exchange.

The rupee has witnessed a steep depreciation and is currently trading below the 95 mark against the US dollar.