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India's Increasing Crude Oil Demand Supply Gap
Nov 1, 2018


One sector which is increasingly looking like a dinosaur is India's oil and gas sector. India's crude oil production was lower by 4.2% in September 2018 as compared to last year.

The worrying factor is this was the lowest production this year.

Comparing domestic production with the crude oil processed by refineries gives an idea of the demand supply gap. Low domestic production as compared to the demand for crude oil places a huge burden on India's import bill.

Rising crude oil prices could have severe implications. Rising inflation. Rising interest rates. Pressure on the government to cut excise duty, thereby impacting its revenues.

We have seen some of this play out. With elections around the corner, expect a lot of subsidies on fuel prices. This is bound to worsen India's fiscal deficit further.

Data Source: Petroleum Planning and Analysis Cell, Business Line

This Chart Of The Day was published in The 5 Minute WrapUp - Don't be a Dinosaur. To Build Wealth with Stocks, First Survive the Ongoing Extinction

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