• FM says rising crude oil prices will impact fiscal health

    Unveiling the union budget for 2017-18, Finance minister Arun Jaitley stated that uncertainty of commodity prices, especially crude oil prices, may have far reaching implications for the fiscal situation of various economies including India.

    He was talking about the major challenges for emerging economies setting the tone for the Budget. The FM, however, added that the prices of crude oil may be checked by quick response from international producers of shale oil and gas.

    “Uncertainty around commodity prices, especially crude oil, has implications for the fiscal situation in emerging economies. It is however expected to be tempered by a quick response from producers of shale oil and gas. This would have a sobering impact on prices of crude and petroleum,” Arun Jaitley said.

    While talking about securing India’s energy needs the finance minister stated the government plans to set-up an additional two strategic crude oil reserves in Chandikhole in Odhisha and Bikaner in Rajasthan taking the country’s strategic oil reserve capacity to 15.33 million tonne.

    The FM also announced a reduction in the Basic Customs Duty on Liquefied Natural Gas (LNG) from the existing 5 per cent to 2.5 per cent in order to promote clean fuel.

    He also added the government will merge existing state-run oil companies to create a global behemoth that would compete with some of the largest global oil and gas players. Joe Namath Authentic Jersey

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