Dec 14, 1999|
Oil is combustible...for India’s fiscal deficit
India’s oil import bill during the current fiscal FY2000 is likely to be 93% higher (at $12.525 billion) than that in the previous year i.e.$6.482 billion. The deficit in the oil pool account is expected to be Rs. 50 billion.
Besides, the energy information administration of the US government has forecast an average price of $20 per barrel over the next year. This not only precludes any hope of oil prices declining but portends a grim scenario for the country’s fiscal position.
During the last three year’s between 1995 to 1998 oil prices declined to as low as $13 per barrel from levels of $25 per barrel. This provided a much-needed cushion for India’s fiscal position and forex reserves.
India’s premier oil exploration company Oil and Natural Gas Corporation (ONGC) produced around 30 million tonnes of oil last year which works out to 45% of India’s refining needs. The consumption of petroleum products is however much higher at around 85 million tonnes in FY99. With India’s refining capacity set to increase by another 60 million tonnes over the next 18 months, the crude oil import bill would further increase.
ONGC would however benefit by getting better realisations for its output. At present the company gets 75% of the international prices for their crude supplies. With exploration infrastructure already in place, increase in international oil prices, benefits ONGC as much as its hurts India.
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Mar 27, 2017
GAIL (India) Ltd has announced results for the quarter ended December 2016. reported 9.4% year on year (YoY) decline in sales, while bottom-line grew 45.4% YoY.
Mar 17, 2017
ONGC has announced results for the quarter ended December 2016. The company has reported 9.2 % year on year (YoY) growth in sales, while bottom-line grew 197% YoY.
Jan 24, 2017
Oil India Limited announced results for the quarter ended September 2016. The company has reported an 6.5% and 7.8% Year on Year (YoY) decline in sales and net profit respectively during the quarter.
Dec 3, 2016
GAIL (India) Ltd has announced results for the quarter ended September 2016. The company has reported 16 % year on year (YoY) decline in sales, while bottom-line grew 180% YoY.
Nov 3, 2016
ONGC has announced results for the quarter ended September 2016. The company has reported 10.3 % year on year (YoY) decline in sales, while bottom-line grew 6.3% YoY.
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Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
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Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
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