The Indian government has raised fuel prices by ten per cent, increasing the costs of budget travel.
Its move comes as the country struggles to keep up with global oil prices.
India's Petroleum Minister, Murli Deora, said: "Due to the relentless increase in international oil prices, it has now become necessary for the consumer... to shoulder a small part of the increased burden, through a marginal hike in prices."
"The increase in the price of diesel, in particular, will have a cascading effect on all-round prices as the transportation costs will rise sharply," a statement by the Communist Party of India said.
Truck rentals are expected to be hiked by around by five per cent, with private taxis and commercial passenger vehicles expected to follow suit.
High oil prices have also affected international budget travel by hitting low-cost carriers. Ryanair, one of the favourites among student and
backpacking tourists, has already warned of a five per cent increase in ticket prices.
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