Benchmark Brent crude is currently trading at around $20.65 a barrel (0.1364 tonnes), Indian basket was $17.66 last week. For a country like India, which imports 84 per cent of its oil needs — 213.22 mt of consumption and 34.2 mt of domestic production — this must be sweet music. But how long will this honeymoon last?
First of all, it is not a honeymoon, says Narendra Taneja, a leading energy expert in India. He says that ultra-low prices of oil are not in India’s interests, because there is a flip side to it.
Apart from affecting government’s revenues (as excise duties on oil are based on value), there are other implications, notes Taneja, a National Spokesperson for the BJP.
