Crude oil at $80 a barrel: How this will impact Modi govt's fiscal maths

Surge in crude oil prices not only increases the burden on retail fuel consumers in India but also presents the Narendra Modi-led central govt with a dilemma over whether or not to intervene

Soon after global crude oil prices hit $80 a barrel, the government said it expected an increase of $25-50 billion in the import bill for 2018-19. That could lead to an oil import bill of $130-155 billion. India’s crude oil import bill for 2018-19 was estimated at $105 billion, according to the petroleum ministry's Petroleum Planning and Analysis Cell (PPAC). Expenditure Secretary S C Garg admitted that the current account deficit would also be impacted, indicating that the rupee could be under further pressure. On the fiscal deficit front, however, he saw no reason to sweat. What fuelled