The risk of fuel subsidies may hurt the stocks of crude-oil producers ONGC and Oil India after a gap of about two years, capping near-term gains.
Though the excise duty on oil has decreased, consumers are deprived of any benefit as a new cess has been added to it, thereby nullifying the cut.
More women can expect freedom from hazardous kitchen smoke as the government has proposed to expand its free cooking gas programme to 8 crore poor families from 5 crore earlier.
Soon after Modi came to power in May 2014, crude oil prices went into a tailspin. The resultant bonanza helped buffer government finances and led to the decontrol of fuel prices.
It shows the increase in government revenues and government expenditure (or oil subsidy) for every $10 a barrel rise in oil prices.
The Union Budget 2018 will be presented on Thursday, February 1, by Finance Minister Arun Jaitley and he is facing enormous challenge to control the spiralling prices of petrol and diesel.
Indian Oil Corporation (IOC), the country’s largest fuel retailer, is likely to report strong third quarter numbers on the back of increased refinery throughput and crude inventory gain offsetting lower refining and marketing margins arising due to lack of adequate increase in auto fuel prices during state elections, according to experts.
India’s daily consumption of crude oil is 4.5 million barrels (1 barrel about 159 litres), the third highest globally. Only the US and China consume more than us.
In an interview to Times Now on the weekend, Prime Minister Narendra Modi extolled the virtues of the Pradhan Mantri Ujjwala Yojana, which offers free gas connections to the rural poor.
As the crude oil prices rise, the government may ask upstream firms like ONGC to bear a part of the kerosene and LPG subsidies, India Ratings and Research said today.