(MENAFN) A plunge of nearly half in oil prices could help Indian Minister reap a fiscal windfall of at least USD12 billion when he presents his 2015-2016 budget in February, local media showed, Khaleej Times reported.
The savings would come in the form of reduced fuel subsidy costs and higher petrol and diesel levies. In addition, finance ministry officials have proposed restoring a crude oil import duty that was scrapped in 2011.
As a result, the government would claw back most of the money that India saves on oil imports. That would help Jaitley hit borrowing targets but dilute any boost to consumption in Asia's third-largest economy.
Energy-hungry India imports around four million barrels of oil per day and the net cost of the country's oil imports is expected to total USD88 billion in the fiscal year to next March, based on a budgeted oil price of USD105 per barrel.
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