Current account under threat if oil surge continues, says Shaktikanta Das

MUMBAI : India’s current account and fiscal deficit could take a hit if oil prices continue to rise after an attack on Saudi Arabian oil facilities over the weekend, the central bank chief said on Monday.

“We should allow a few more days to see how the situation plays out before taking a final view…depending on how long it persists it will have some impact on the current account deficit and further perhaps on the fiscal deficit if it lasts longer,” Governor Shaktikanta Das told the CNBC-TV18 news channel.

Das said it was important to see whether alternative sources of supply come up and how soon the installations take to resume operation.