India Rations Diesel at 200 Liters a Day as Iran War Threatens 4.8% Deficit
Updated
Updated · Bloomberg · Jun 13
India Rations Diesel at 200 Liters a Day as Iran War Threatens 4.8% Deficit
3 articles · Updated · Bloomberg · Jun 13
Summary
India has moved deeper into crisis mode, rationing diesel, weighing spending cuts and seeking overseas capital as the Iran war pushes up energy costs.
A 200-liter daily cap on diesel sales is part of the response to higher crude prices, which are also lifting fuel and fertilizer subsidy costs for the government.
Those pressures are expected to widen the fiscal deficit to about 4.8% of GDP this year, up 50 basis points from the 4.3% target set from April 1.
The latest steps show New Delhi shifting from price and subsidy management toward broader financing and budget defenses as the conflict strains the economy.