Sharp rise in price of crude will cause problems for country, says P Chidambaram

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New Delhi: With tensions between the US and Iran escalating in view of the killing of Quds Force chief General Qassem Soleimani, Congress leader P Chidambaram on Saturday said that any sharp rise in prices of crude will hurt the people badly. Chidambaram told in an interview that if oil prices flare-up, "it will hurt us badly".

He said the budget is premised on a certain average price of a barrel of oil. "Immediate impact will be if oil prices flare-up. Our budget is premised on a certain average price of a barrel of oil. If that goes up sharply, it will hurt us very badly.

It will impact the import bill, the current account deficit, fiscal deficit; there are a series of downside effects of it. Secondly, prices will go up. If oil prices flare-up, we are in trouble," said he.A US airstrike near Baghdad international airport killed Iran`s elite Quds Force chief General Qassem Soleimani on Friday.