Tuesday, August 02, 2005

The Costs Of Oil Subsidy Hits India

India, which sells oil through a government-supported price scheme, is now having to float bonds to make up for the difference between the world price and the price paid at the pump. The government proposes to issue bonds for Rs 5,762.85 crore (about $13.25 billion, unless I've gotten my conversion wrong). Man, that's a ton. Taxes are going up, that's for sure... Not sure if this is for sales before the Administered Price Mechanism discussed in the article was wound down or not.