OPEC's failure to agree to raise output will hurt Asian economies which already spend heavily on fuel subsidies, S Jaipal Reddy, oil minister of India, the world's fourth-largest oil importer, said on Thursday.

Oil prices jumped on Wednesday after OPEC failed to reach a deal to increase output, raising fears of supply shortages later this year that could fuel a further price rally. That could slow the global economic recovery.

"Since we are the fourth-largest oil consuming country and a net importing country we are deeply concerned at this highly negative development," Reddy told Reuters, referring to the outcome of the OPEC meeting.

"Our need, like many of the Asian economies, will be rendered more vulnerable to this kind of oil shock," Reddy said.

India imports about four-fifths of its crude oil needs and in the last fiscal year ending March 2011, its crude imports jumped 6.7 percent to 3.27 million barrels per day (bpd).

Brent crude for July delivery jumped over $1 per barrel on Wednesday and was trading at $118.05 a barrel by 0559 GMT on Thursday.

India has repeatedly sidestepped a decision on lifting state-set prices of fuels, fearful of stoking inflation at a time when public anger is running high over graft scandals.

India last year allowed state-run oil firms to fix the price of petrol but continues to control the prices of diesel, kerosene and cooking gas.