 "Budget to assume crude oil price of $55-60/bbl for FY18")
The Centre is preparing the Union Budget 2017-18 assuming an average crude oil price of $55-60 a barrel for the coming financial year. At those prices, the petroleum subsidy bill for next year would be a comfortable Rs 26,000-27,000 crore, similar to this year, it is assumed.
However, if prices hover above $60 a barrel for most of next year, the subsidy calculations and overall assumptions will be under strain. Business Standard has learnt from senior sources that the government is likely to pass on the burden to consumers if oil prices breach the $65-a-barrel mark.
According to discussions between
