Volatility in petroleum prices putting pressure on fisc: Mayaram

Concerned over the developments in Iraq, India today said volatility in petroleum prices is

RELATED ARTICLES

putting pressure on its finances at a time when emerging economies are passing through a phase of tepid economic activity.

"Recent developments in Iraq have created huge uncertainties with an overhang on the global economy. The volatility in petroleum prices have put pressure on the fisc in countries like India," Finance secretary Arvind Mayaram said at a G20 Deputies Meeting in Melbourne.

The Indian government earlier said fuel supplies in the country will not be impacted by the conflict in Iraq, which is the nation's second largest crude oil supplier.

Against 18.7 million tonnes of crude oil imports planned by Indian Oil Corp and Hindustan Petroleum Corp in 2014, 50 per cent of the contracted quantity has already been lifted.

India bought 25.1 million tonnes of crude oil from Iraq in 2013-14 fiscal. These imports included those by PSU and private refiners like Reliance Industries. An equal amount is planned to be imported in current year.

Mayaram said the global context is increasingly challenging and becoming less supportive for emerging economies growth prospects.

"Emerging markets are going through a phase of tepid economic activity, with some of the major emerging economies seeing significant negative output gaps," he added.

The reasons for the slowdown, Mayaram said, have been partly structural and exacerbated by external environment especially increased volatility with unwinding of unconventional monetary policies.

The senior Indian official further said that recent normalisation of unconventional monetary policy in the US has been largely smooth, albeit low volatility in the markets should not lead to complacency.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Indian-promoted global corporations must follow accounting best practices

    The international advisory board (IAB) of capital market regulator Securities and Exchange Board of India (Sebi) has suggested that separate governanc

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Cost of education must be controlled

In India, we pay very little attention to the cost ...

Rajgopal Nidamboor

Focus to keep your daily qualms at bay

Philosophers and scientists have, for long, compared the human brain ...

Gautam Gupta

What we can learn from the French fashion scene

It was a pleasure and a treat to experience one ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture