Fuel prices are set to rise again as India tries to fix its trade deficit

Investors are pulling money, and the pump may answer

India’s next economic adjustment could arrive through higher fuel prices. As foreign investors sell Indian stocks, the rupee faces pressure, widening the trade deficit. The government is likely to manage demand and imports by raising duties and curbing travel abroad, with costs shared between consumers and the state—while India’s growth and low inflation provide a cushion.