FY19 Budget may assume crude oil price at $65/barrel

The ongoing price rise could mean a higher subsidy on petroleum products this year and the next

Union Budget 2018-19 is likely to assume an average crude oil price of $65 a barrel. It was $55 a barrel for 2017-18. Crude oil prices have been rising because of an extension of the earlier production cut deal by the Organization of the Petroleum Exporting Countries (Opec). India imports about 80 per cent of its crude oil consumption.

This publication has learnt from senior government sources that the ongoing rise could also mean a higher than anticipated subsidy on petroleum products this year and the next. For 2017-18, this had been budgeted at Rs 25,000 crore. For 2018-19, it