Rising oil can burn Rs 1-trillion hole in govt coffers in FY23: SBI report

Based on the existing value-added tax (VAT) structure and taking Brent crude price of $100 - $110 per barrel, SBI believes diesel and petrol prices should have been higher by Rs 9-14 each by now

Rising oil prices that have shot up over 21 per cent in the past one month to hit $105 a barrel recently in the backdrop of the ongoing Russia – Ukraine geopolitical conflict spell trouble for the Indian government and can upset its fiscal math. 

According to a report by the economic wing of State Bank of India (SBI), rising crude oil prices can burn a hole as big as Rs 1 trillion in government’s coffers in fiscal 2022-23 (FY23). Despite the rise in oil