NEW DELHI: India's crude oil import invoice is likely to bounce through about $6 billion in 2018-19 as rupee dropping to a record low has made buying of oil from in another country more expensive.
Rupee hit some other record low of 70.40 to a US buck on Thursday, earlier than toning up a little to near at 70.15.
India, which imports over 80 in keeping with cent of its oil wishes, spent $87.7 billion (Rs five.65 lakh crore) on importing 220.43 million tonne (MT) of crude oil in 2017-18. For 2018-19, the imports are pegged at nearly 227 MT.
At the beginning of the financial year, the government had estimated that crude oil import invoice will be round $108 billion (Rs 7.02 lakh crore), at an average crude oil price of $65 in keeping with barrel and change rate of Rs 65 in keeping with buck.
But the change rate has been at an average of Rs 67.60 till August 14. If the rupee is to stick round 70 in keeping with buck for the remainder of the ongoing fiscal, the oil import invoice will be $114 billion.
If oil costs proceed at those ranges and rupee at 70 a buck, retail rates may move up through 50-60 paise a litre.
Meanwhile, in what's an bizarre timing for price hikes, car corporations are stepping into for a fresh spherical of markups with Maruti and Mercedes Benz saying their hikes on Thursday. Others like Tata Motors larger costs with effect from August 1 whilst BMW and Audi are mulling increases too. Rupee's slide is a reason for the hikes.
Rupee hit some other record low of 70.40 to a US buck on Thursday, earlier than toning up a little to near at 70.15.
India, which imports over 80 in keeping with cent of its oil wishes, spent $87.7 billion (Rs five.65 lakh crore) on importing 220.43 million tonne (MT) of crude oil in 2017-18. For 2018-19, the imports are pegged at nearly 227 MT.
At the beginning of the financial year, the government had estimated that crude oil import invoice will be round $108 billion (Rs 7.02 lakh crore), at an average crude oil price of $65 in keeping with barrel and change rate of Rs 65 in keeping with buck.
But the change rate has been at an average of Rs 67.60 till August 14. If the rupee is to stick round 70 in keeping with buck for the remainder of the ongoing fiscal, the oil import invoice will be $114 billion.
If oil costs proceed at those ranges and rupee at 70 a buck, retail rates may move up through 50-60 paise a litre.
Meanwhile, in what's an bizarre timing for price hikes, car corporations are stepping into for a fresh spherical of markups with Maruti and Mercedes Benz saying their hikes on Thursday. Others like Tata Motors larger costs with effect from August 1 whilst BMW and Audi are mulling increases too. Rupee's slide is a reason for the hikes.
Rupee at 70 is not good for your daily commute
![Rupee at 70 is not good for your daily commute]()
Reviewed by Kailash
on
August 17, 2018
Rating:
