With Brent crude falling below $50 per barrel — it touched $49.93 in early trade on Wednesday, the lowest since July 2017 — India could draw some comfort as its extra fuel subsidy bill could prove to be lower than recent estimates and the current account deficit (CAD) for FY19 could be a few billion dollars less than reckoned earlier.
Since the beginning of FY19, crude has been caught up in wider financial market weakness as higher US interest rates, the US-China trade dispute and the US shutdown unnerved investors and exacerbated worries over global growth. The price had touched a peak of $86.29 per barrel on October 3 this year, prompting the Centre to cut excise duty by Rs 1.50 per litre.
Public sector oil marketing companies (OMCs) also began absorbing Rs 1 on every litre of petrol and diesel they sell. The steps were aimed at giving some relief to consumers. Read More