March 9, 2011 5:25 PM

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Rally in crude oil prices may be short-lived:Basu

The government today said it is hopeful that the rally in crude oil prices due to the ongoing political turmoil in Middle East and North Africa region will be short-lived. Chief Economic Advisor Kaushik Basu said, there is expectation that crude oil prices are going to go down. Crude prices, which has become a big concern for the government fighting inflation, softened to about 104 dollars a barrel on the New York Mercantile Exchange after touching 107 dollars a barrel, its highest level since September 2008. While pointing out that rising crude price in international market was indeed a concern for the government, Basu expressed the hope that the rise driven by political problems in the Middle-East will be short-lived. However, he added, India's growth could be impacted if the crude oil prices rise to 130-140 dollars a barrel and remain there for sustained period of time.

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