How India extricated itself from an energy squeeze

New Delhi unexpectedly emerged relatively unscathed from this year's oil price volatility, currency fluctuations and geopolitical tensions

India experienced a combination of external pressures in 2018. These included the rise in global oil prices which pushed up retail prices of gasoline in the country by around 9pc between mid-August and early October, a weakening of the rupee, and US pressure to cut crude oil imports from Iran, which comprise around 13pc of total oil imports, ahead of the re-imposition of sanctions. India arguably emerged from these none the worse for wear. The government, facing the prospect of unhappy consumers ahead of a general election in 2019, intervened to cut excise duties by 1.5 rupees ($0.02) a litre. It also asked state refiners to reduce their margins by 1 rupee a litre. Following this, the soften