India Caps Diesel Sales at 200 Liters as Iran War Threatens 50-Basis-Point Deficit Overshoot
Updated
Updated · Bloomberg · Jun 12
India Caps Diesel Sales at 200 Liters as Iran War Threatens 50-Basis-Point Deficit Overshoot
3 articles · Updated · Bloomberg · Jun 12
Summary
India imposed rare diesel rationing on Friday, limiting purchases to 200 liters a day per customer as the Iran war pushes up energy costs.
A wider fiscal hit is also taking shape: authorities are preparing for this year’s budget deficit to exceed the official target by as much as 50 basis points.
The fuel curbs are part of a broader crisis response that includes weighing spending cuts and seeking overseas capital to cushion the economic shock.
The moves show New Delhi shifting into economic defense mode as higher imported energy costs from the Iran conflict strain both supplies and public finances.