Factors that restrain Centre from raising oil prices

Despite the global crude oil prices spurting to a record $135 a barrel this week and the Indian crude basket touching $125 a barrel, the lack of political consensus along with fear of inflation galloping out of control has prevented the Centre from hiking the prices of petrol and diesel.
With the inflation remaining static at 7.82 per cent this week, the government is concerned over its impact on the economic growth.
Although there has been tremendous pressure to hike the petrol prices, there is a fear within the government that it will not only have political repercussions but also create a negative inflationary impact on a cross section of the economy.
Official sources say the Finance Ministry as well as the Reserve Bank of India are of the view that if petrol prices are hiked at this juncture, it will add to the inflationary pressure and make things further difficult for the government.