Oil price increase will add to India’s fiscal burden, losses for oil marketing co to prolong

NEW DELHI: The conflict between Russia and Ukraine, which has led to a reduction in the offtake of Russian crude and a consequent increase in oil and gas prices, will add to India’s fiscal burden but it will be a positive for upstream oil companies, said rating agency Icra in a note.
India’s commodity imports from Russia and Ukraine are less than 2%. Major commodities imported from other countries include oil, gold, metals and chemicals. With many countries imposing sanctions on Russia, prices of the said commodities are surging. Consequently, concerns over India’s growth and inflation projections are increasing. If this commodity price surge sustains for long, it might impact the Indian economy.
“A few countries including the United States have banned Russian oil and gas imports while some others are planning to phase these out over a period of time. With traders and refiners avoiding Russian oil, prices have jumped.