The Government on Friday said the surge in oil prices would push up the oil import bill by upto $50 billion under different scenarios. It however said that rise in oil prices would not impact the country's economic growth.
“The spurt in oil prices will push up the oil import bill by $25 billion to $50 billion under different scenarios,” said Economic Affairs Secretary Subhash Chandra Garg here, adding that India spent $72 billion on oil imports last year.
“However, economic growth will not be impacted by the rise in oil prices, which have touched $80 per barrel -- highest since November 2014,” he said.
“The Government is watching the situation and adequate steps will be taken,” he said without elaborating in details.
As crude oil prices went past the $80 mark on Thursday, no doubt, there is some worries among people on rising oil prices day by day. Fuel bills have been inching up literally every day across the country. On Friday, petrol prices in the national capital of Delhi hit Rs 75.61, up 29 paise from Rs 75.32 on Thursday. The Finance Ministry in the meantime once again ruled out an excise duty cut, which means that retail fuel prices are unlikely to cool down any time soon.
However, the Government remained non-committal on cutting excise duty to ease the burden from rising oil prices, the Government said that the recent spurt in global rates is a matter of concern as it could inflate import bill by as much as $50 billion and impact current account deficit (CAD).
Asked if the Government would cut excise duty on petrol and diesel, he said he has nothing to say on excise duty front. Just watch. “This would push up current account gap, but inflation is under control and the fiscal deficit scenario is not worrisome either,” Garg said.
Garg further said currency in circulation has come down in the last four days but situation is completely normal now. “Some outflows in the bond and equity markets have been seen but it is not alarming. We are nowhere near a 2013-like situation,” he added. Outflow of $4-5 billion in one and half month is not excessive, he said, adding that the Government will continue with its borrowing programme and does not see any reason to react.