INSUBCONTINENT EXCLUSIVE:
current account position, inflation, monetary policy stance and fiscal balance, India Ratings and Research (Ind-Ra) said in a report.
The
rating agency said that if crude basket averages $68-72.86 a barrell and rupee averages 66.6-67 for every dollar for FY19, the current
account deficit could widen $22 billion-31 billion for the year
Therefore, with a rise in oil prices, the state governments garner higher revenue from the sale of same quantity of oil as opposed to the
central government whose excise duty is fixed in terms of INR/litre
A surge in crude oil prices, therefore, gives the state governments more headroom to rationalise the tax rate without compromising much on
gas by 10 per cent by 2022.
But the agency believes that the crude oil prices will correct from the present high of around $78 a barrel due
to increased US shale production
the ongoing global recovery
