Falling Global Crude Oil Prices and The Benficiaries in India

 

India has been one of the biggest beneficiaries of the dramatic collapse in crude oil prices, which hit an 11-year low of $36 per barrel this week.

 Global crude prices have crashed nearly 70 % from their peak of $115 per barrel in June 2014


1) India's annual oil import bill has fallen from $108 billion in 2012 to $61 billion in 2015, leading to savings of $47 billion

2)Oil subsidy payments are likely to be just 0.2 per cent of GDP in 2015-16 as compared to 1 per cent in 2012-13, leading to savings of $14 billion for the central government

3)The central government has also been able to generate $14 billion in revenues since November 2014 by hiking excise duty on petrol and diesel

4)The corporate sector, which uses oil as ingredients/raw materials, is estimated to have saved $12 billion from the fall in oil prices

5) Consumers have been least benefitted: Households are estimated to have saved just $8 billion on account of the slump in oil prices