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Centre may raise fuel prices if Middle East crisis continues, says RBI Governor

RBI Governor Sanjay Malhotra warned that India may have to increase petrol and diesel prices if the ongoing Middle East conflict continues for a prolonged period.

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Reserve Bank of India

Reserve Bank of India Governor Sanjay Malhotra has indicated that petrol and diesel prices in India could increase if the ongoing crisis in the Middle East continues for a prolonged period.

Speaking at an international conference hosted by the Swiss National Bank and the International Monetary Fund in Switzerland, the RBI Governor said the government and state-run oil companies have so far absorbed rising crude oil costs, but such measures may not be sustainable indefinitely.

Malhotra said that if the conflict continues for a longer duration, it may become necessary for the government to pass on part of the increased fuel prices to consumers. He noted that excise duty cuts and losses borne by oil marketing companies have helped keep domestic fuel prices stable despite volatility in global crude oil markets.

The remarks come amid growing concerns over the economic impact of the ongoing tensions in West Asia, particularly around disruptions linked to the Strait of Hormuz, a critical global oil transit route. India imports a significant share of its crude oil requirements, making the country vulnerable to sharp swings in international energy prices.

The RBI Governor also warned that supply-chain disruptions caused by the conflict are beginning to affect India and could add pressure on inflation in the coming months. India’s retail inflation rose slightly to 3.48% in April from 3.40% in March, although it remained below market expectations.

Malhotra said the RBI would remain flexible in its monetary policy approach and take action if inflationary pressures become persistent. The central bank has projected India’s economic growth at 6.9% for the current financial year while estimating average inflation at 4.6%.

The Centre has so far maintained that fuel supplies remain stable despite global volatility. However, analysts have cautioned that prolonged geopolitical uncertainty and elevated crude oil prices could eventually lead to retail fuel price revisions in India.

India News

Annamalai resigns from BJP, signals launch of new political party in Tamil Nadu

Former Tamil Nadu BJP president K Annamalai has submitted his resignation to the party leadership in Delhi, with reports indicating that he is preparing to launch a new political outfit.

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K Annamalai

Former Tamil Nadu BJP president K. Annamalai has resigned from the Bharatiya Janata Party after meeting senior party leaders in New Delhi, marking a significant political development in the state. Reports indicate that he is now preparing to launch a new political party.

According to reports, Annamalai met BJP national president Nitin Nabin and the party’s national general secretary (organisation), B. L. Santhosh, in Delhi and formally submitted his resignation.

The move comes after months of speculation regarding his future within the BJP. Annamalai, a former IPS officer who joined the party in 2020, had emerged as one of the BJP’s most prominent faces in Tamil Nadu and played a key role in expanding the party’s visibility in the state.

Reports suggest that differences over the BJP’s alliance strategy in Tamil Nadu, particularly its association with the AIADMK, were among the factors behind his decision. Sources also indicated that Annamalai had concerns regarding the party’s electoral approach and his future role within the organisation.

Despite his resignation, BJP leaders reportedly attempted to persuade him to reconsider his decision. Discussions were held with the former state chief as the party leadership sought to address his concerns.

Reports further indicate that Annamalai is considering the launch of a new political party focused on Tamil Nadu politics. While details about the proposed outfit are yet to be officially announced, his next move is expected to attract considerable attention in the state’s political landscape.

The development comes at a time when Tamil Nadu politics is witnessing significant shifts, and Annamalai’s decision could have implications for future political alignments in the state.

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G Parameshwara likely to be deputy CM in DK Shivakumar-led Karnataka government

G Parameshwara is expected to be appointed Deputy Chief Minister as the Congress finalizes the cabinet for the incoming DK Shivakumar-led Karnataka government.

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Senior Congress leader and Karnataka Home Minister G Parameshwara is likely to be appointed Deputy Chief Minister in the new government led by DK Shivakumar, according to sources familiar with the ongoing discussions within the party. The move is seen as part of the Congress leadership’s efforts to ensure social and regional representation in the state’s new political setup.

The development comes as DK Shivakumar prepares to take oath as Karnataka’s Chief Minister following his election as the leader of the Congress Legislature Party after Siddaramaiah’s exit from the top post. The swearing-in ceremony is scheduled to take place in Bengaluru on June 3.

Parameshwara is one of the most prominent Dalit faces in Karnataka Congress and has held several important positions in the party and government over the years. Party leaders have reportedly been engaged in consultations over the composition of the new cabinet and the distribution of key positions ahead of the swearing-in ceremony.

The Congress leadership has been working to finalize ministerial appointments and balance representation among various communities and regions. Reports have also suggested that multiple deputy chief minister positions were under consideration as part of the broader cabinet formation exercise.

High-level meetings involving DK Shivakumar, Siddaramaiah and senior Congress leaders have taken place in New Delhi in recent days to finalize the structure of the new government. The discussions have focused on cabinet composition and organizational appointments ahead of the transition.

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CBSE chairman and secretary transferred as Centre orders probe into OSM irregularities

The government has transferred CBSE’s top two officials and ordered an investigation into alleged irregularities in the procurement and implementation of the On-Screen Marking system.

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The Central Government has transferred the chairman and secretary of the Central Board of Secondary Education (CBSE) and constituted a committee to investigate alleged irregularities linked to the board’s On-Screen Marking (OSM) system.

The move comes amid growing concerns over the digital evaluation process used for Class 12 board examinations this year. Several students who sought access to scanned copies of their answer sheets reportedly claimed that the documents uploaded on the verification portal did not match their actual answer books. CBSE officials have acknowledged that around 20 cases involving answer-sheet mismatches were identified during the evaluation process.

Concerns over evaluation system prompt government action

The OSM system was introduced for the evaluation of Class 12 board examinations, replacing the traditional physical checking process with assessment of digitally scanned answer sheets. While the board had defended the technology-driven system as a step towards modernising evaluations, complaints emerged after the declaration of results.

Students and cybersecurity experts also raised concerns regarding technical issues on the portal. Complaints included answer-sheet mismatches, blurred scans, missing pages and payment-related failures during the verification process.

In response to the controversy, the Centre has ordered a probe into the procurement of OSM-related services. Reports indicate that the inquiry will examine whether there were any procedural lapses or irregularities in the procurement process associated with the digital evaluation system.

OSM system faces wider scrutiny

The issue has attracted attention beyond administrative circles. A parliamentary panel has reviewed concerns related to the OSM system, while legal challenges have also been filed seeking examination of the evaluation process.

Earlier, Union Education Minister Dharmendra Pradhan had acknowledged discrepancies in the system and assured students that corrective measures would be taken. He stated that concerns raised regarding the evaluation process would be addressed and action would follow if any wrongdoing was found.

Despite the controversy, the government has maintained that digital evaluation remains an important part of the future of assessment and that the overall framework of the OSM system is likely to continue, subject to reviews and improvements.

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