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The recent issues dogging West Asia have become a major cause for concern due to the spike in the crude oil prices.

If the crisis continues, then any further hike in the crude oil prices will lead to an increase in petrol product prices and the import bill will go up as well, according to C Rangarajan, chairman of the Economic Advisor Council to the Prime Minister of India.

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Speaking to reporters at the function organised for signing of a memorandum of understanding between Central University of Tamil Nadu and Madras School of Economics, he said, "if the crude price remains above $100 per barrel, then an action is required."

"Issues in West Asia have become a major for concern due to the spike in the crude oil prices. If the West Asia crisis continues, then a further hike in the crude oil prices will lead to an increase in petrol product prices and the import bill will go up as well," said Rangarajan.

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Meanwhile, a Reuters report titled India most at risk as higher oil bites Asia stated that the Indian government would be forced to deregulate diesel prices if global crude touches $150 to $160 a barrel.

The report quoted Kaushik Basu, chief economic adviser in the ministry of finance.

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"India is one of the top risk countries in terms of the cost of subsidies, according to Citibank research. Risks for oil price shocks appear greatest in India and Pakistan, which already have "very high" deficits and "do not have sufficient offsetting oil revenues to provide a cushion," added in the report.

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Meanwhile, commenting on food prices, Rangarajan said, "no reason why food prices should go up again, all indication is vegetable prices are going down".

On the inflation he said, February inflation numbers may not fully reflect fall in vegetable prices and March numbers will reflect fall in vegetable prices, he said.