INSUBCONTINENT EXCLUSIVE:
With government due to present its Budget in Parliament on February 1, its last before a general election due by May, all eyes remain on
government's annual statement
From jittery crude oil prices to trade wars to currency fluctuations, energy sector has had a bumpy ride in past one year, and has a lot of
expectations from government
As a country which meets more than 80 per cent of its oil requirement through imports, strengthening crude prices becomes a big challenge as
contain current account deficit and capital outflows - experts say there are few issues that need to be addressed.Will government consider
bringing petroleum products under ambit of Goods and Services Tax (GST) What kind of changes can such a move bring to oil marketHere's what
energy sector expects from upcoming Budget.Gaurav Katariya, research head (commodity), Arihant Capital Markets:"There have been talks in
recent times that government should bring petroleum products under GST
However, it is a decision that will have an impact on our economy at macro level and therefore needs thorough analysis on different points
like its effects on overall GST collection etc.""But since government is trying to appease common man ahead of general elections, I am
expecting that at least some decisive points will be noticed and we may see government taking baby steps towards bringing petroleum products
under GST."Abhishek Bansal, founder and chairman, ABans Group of Companies:"India is working towards reducing its dependence on imported
fuel and promoting electric vehicles in a phased manner The government is keen on expanding waterways transport, electrical vehicles and
promoting solar energy on a large scale with private and public sector partnership.""Other than transport fuel, government is also working
in direction of promoting bio-CNG for domestic consumption
Although current budget allocation is low, government may increase investments in this sector as well.""We believe that being into an
election year, government may put some light on how petroleum products can be brought under GST, although it does not look feasible at
projected to be in broader range of $60-$70 for year 2019, which is likely to prove as a significant challenge going forward."
