Budget 2018: Rising oil prices a big challenge for FM Jaitley

At the current consumption level, a dollar increase in crude price on a permanent basis will increase the oil import bill by roughly Rs 100 billion per annum

Global oil prices have been hovering near a three-year high of $70 per barrel recently, propelled by production cuts by Opec and Russia. 

Recovering international crude prices has raised concerns for the Indian economy amid a widening trade deficit and growing fiscal deficit projections.

"The surging crude prices will put pressure on inflation, the balance of payments and fiscal policy. We believe the rally is likely to continue until March for certain until the winter demand subsides and clarity is reached on the production plans in the US,"  Icra said in a note on January 12.

The trade