As of 27th August 2013, the crude oil basket in India crossed Rs. 7500 per barrel on MCX, an all time high level due to INR at all time low of 66 plus against USD.
Just before the global crisis of 2008, when crude oil touched $150 a barrel, Indian brent crude oil price touched a high of around 5700, 25% cheaper than current levels, mainly due to depreciation of INR against USD.
Post crisis, the curde oil price fell Rs. 2200 per barrel which was the major factor that helped India recover soon after the global crisis.
Current prices at Rs.7500 will exert tremendous amount of pressure on fiscal deficit, current account deficit and consequently the currency. So INR is in self feeding cycle which would correct only if deficits are brought under control by raising diesel prices to actual cost with no subsidy and lower gold and oil imports.