Russia’s military operation against Ukraine sent the global oil markets in a tizzy as Brent crossed the $100 mark after almost eight years. For the India consumers, the short respite in local fuel prices could soon be over as the blowback from Putin’s actions could sink their household budget.

The pause in fuel price hikes despite surging global crude is likely to get over when the last ballot is cast on March 7. The Oil Marketing Companies (OMCs) have not hiked fuel prices since November 4 last year when the government brought some respite to consumers by reducing excise on diesel by Rs 10 and on petrol by Rs 5.

With the failure of diplomacy to deter Putin from going ahead, the crude oil market as well as gas prices are set to spiral further and put pressure on major oil importers like India.

Finance minister Nirmala Sitharaman, after chairing the FSDC meet, acknowledged that soaring global crude oil prices pose a challenge to India’s financial stability. She said that the government is keeping a watch on the situation.

Putin’s declaration of military operations in Ukraine will reverberate across the Mint Street which has so far maintained a dovish stance on monetary policy prioritising economic revival over inflation worries.

Shaktikanta Das will have to weigh his options amid a changed scenario and roll back easy money to put prices in check.

Reducing taxes further just as it did last year can ease some of the pain for consumers. Nirmala Sitharaman, while addressing the press after the FSDC meet, said that the government will come out publicly when there is a need to intervene.

How far that option can be exercised remains to be seen at a time when the government has major spending plans for the next fiscal and tightening rate scenario could make borrowing expensive.