India takes number of steps to address high oil price challenge

The Government of India has taken a number of steps to address the challenges arising out of the surge in crude oil prices in the international markets, finance ministry sources said on Monday.

Nearly 85 per cent of India's petroleum product demands are met through imports. In the financial year 2020-21, over 84 per cent of India's crude oil and petroleum products demand was met through imports. In the previous year, it stood at 85 per cent, reports ANI.

Crude oil prices have surged since the beginning of this year largely due to the Russia-Ukraine conflict. Brent crude futures traded at $111.27 per barrel on Monday.

The high crude oil prices will push India's import bills. The current account deficit will be higher if crude surges, the sources said.

However, the finance ministry source said the government would stick to its 6.4 per cent fiscal deficit target for the current financial year.

On the fluctuation in the currency market, the source said the rupee depreciation against the US dollar is the least.