How the Centre is using oil price decline to reset expectations and boost revenues
Historically, that’s how the Union government’s relationship with fuel has been.
On the one hand, the Centre wanted India to consume big, as it meant the economic engines were moving. On the other, this big consumption ended up raising tricky macro-economic challenges, with oil imports widening the current account deficit and oil subsidies adding to the fiscal deficit.
As oil prices cooled over the past few years, that relationship has been changing. Now, the relationship may be undergoing a complete reset thanks to the domino effect of this pandemic.
