Centre has room to isolate consumers from 15% hike in crude prices: MOFSl

Centre has the room to isolate consumers from roughly 15 per cent hike in international crude oil prices, said Motilal Oswal Financial Services.

According to the brokerage house’s estimates, the Centre has the financial capacity to take the hit on its own income statement without breaching the fiscal deficit targets.

“Considering our revised crude oil prices forecasts of $80 per bbl in FY23 (from $70 per bbl earlier), if the GoI decides to take the entire burden, it would cost $12-13 billion (or 0.4 per cent of GDP) next year,” the brokerage house said in a report.