Brent near $90 offers relief on fiscal, inflation fronts
Mint - Economy · Published 10 November 2026 · Last updated
Brent crude trading near $90 a barrel offers relief to India's fiscal and inflation fronts, though prices remain above pre-West Asia war levels and continue to strain oil marketing companies.
Key points
- Brent crude's January contract on the Intercontinental Exchange traded at $90.22 a barrel, down 2.54% on 10 November 2026.
- West Texas Intermediate's December contract on the NYMEX fell 2.06% to $85.07 a barrel on 10 November 2026.
- State-run oil marketing companies raised fuel prices by about ₹10 per litre in a staggered manner in May 2026.
- In October 2026, under-recovery on domestic liquefied petroleum gas was about ₹230 per cylinder, while marketing losses on petrol and diesel were ₹9 and ₹12 per litre.
- India imports nearly 90% of its crude oil requirements, with an import bill of about $123 billion in FY26.
- The State Bank of India projected that the central government's fiscal deficit could exceed the FY27 budget estimate by ₹1.2 trillion.
- India's retail inflation climbed to a 23-month high of 5.54% in September 2026, staying above the Reserve Bank of India's 4% midpoint target.
- The Indian economy grew 7.8% in the first quarter of FY27, up from earlier official projections.
Background
- Brent crude was trading around $70 per barrel on 1 February 2026, when the Union Budget 2026-27 was presented.
- The West Asia war began on 28 February 2026, pushing crude prices significantly higher and prompting an excise duty cut by the Centre.
- In June 2026, the Centre reduced the number of subsidized liquefied petroleum gas cylinders available to Pradhan Manti Ujjwala Yojana beneficiaries from nine to four a year.
Prelims facts and Mains angle for this issue are in the full SWAदेSH note.
Original report: Mint - Economy