New Delhi, March 27 -- A sharp rise in global crude oil and natural gas prices due to the ongoing West Asia conflict could complicate Indias fiscal position in FY2026 27, potentially increasing subsidy burdens and pressuring government revenues, ratings agency ICRA said in a report on Thursday.
According to ICRA, crude oil prices have more than doubled from pre-crisis levels, driven by supply disruptions and logistical challenges. Elevated energy costs are expected to increase the governments expenditure on fertiliser and LPG subsidies, while also affecting corporate tax collections, refining margins, and dividend receipts.
The agency noted that any reduction in excise duties to compensate oil marketing companies could further weigh on ...