The Modi government is coming under increasing pressure to cut duties after Opec and allies decided to play hardball on output cuts.

Finance minister Nirmala Sitharaman on Thursday admitted there was a case for tax cuts to ease the burden on consumers but said the states should also cut their levies.

With political parties sounding the poll bugle, the ruling BJP runs the risk of being labelled insensitive to the plight of the common man.

Oil minister Dharmendra Pradhan told Reuters Opec’s decision would undermine consumption-led recovery and hurt consumers.

Earlier, Saudi oil minister energy minister Abdulaziz bin Salman fobbed off Pradhan's repeated pleas for an output hike by Opec.

He said New Delhi should take some of the crude out of storage that they had purchased at very cheap rates last year.

“With regard to India, very simple. I would ask my friend (Pradhan) that he withdraw some of the cheap oil that they bought in April, May and June,” bin Salman said.