LPG News Live Updates: 'If crude remains near USD 100/bbl, each month of crisis to add Rs 30,000 cr additional cost for centre'
(Reported by news agency ANI)
If crude oil prices sustain above USD 100 per barrel in FY27, the Central government's annual additional expenditure could rise by Rs 3.6 lakh crore, according to a report by Elara Securities.
The report highlighted that the ongoing Middle East conflict shows few signs of de-escalation, which could intensify Asia's energy crisis and trigger global supply chain disruptions.
It stated "scenario where Brent crude sustains at USD 100/ bbl through FY27E, India's current account deficit (CAD) could widen to 2 per cent of GDP (from 1 per cent at US D 70/bbl), USD -INR could weaken further to 94 - 95, while the Centre's annual additional expenditure would rise by INR 3.6tn/annually".
It noted that prolonged interruptions in the Strait of Hormuz (SOH) beyond mid-March, delayed energy supply normalization from affected producers, and persistent geopolitical uncertainty could put pressure on India's external sector.
These developments may also spill over into the domestic economy and lead to rising fiscal pressures.