States gained ₹49,229 cr from VAT revenue on fuel when oil prices were increasing and they will forego only ₹15,021 cr after oil price has been downwardly adjusted through excise cut by the Centre.
The government is committed to use the deploy strategic petroleum reserves to contain market volatility, says the finance ministry.
Though, Russia is a marginal trade partner with barely 1.4% of India's import and 0.9% of exports, spike in crude and commodity prices will elevate inflation and dent consumer demand.
State-run oil marketing companies in India have yet to hike retail prices of petrol and diesel.
The Brent crude price is now at around $90 a barrel while the Indian basket costs around $87.
The firm's strategists believe that S&P 500 index could decline 5% in 2022 while developed markets could end the year higher.
Highest increase in wholesale inflation since May; core inflation at an all-time high of 11.9% in October.
Anything beyond $70 will kill the oil market, spur demand for alternative sources of energy, fuel demand for green energy: BPCL, HPCL.
According to a BofA Securities report, the Covid-19 shock could delay India touching the GDP of Japan by three years. In their latest estimates, it will now happen by 2031 if the economy grows at 9%.
The alternatives industry faces short-term disruption due to the Covid-19 pandemic, but the longer-term impact is more positive, says Preqin.
