Economy Macro Implications n Emkay

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Economy

Macro Implications

n     Empowered Group of Ministers (EGoM) raised the prices of Diesel by Rs3/litre, LPG by Rs50/cylinder and kerosene by Rs2/ litre

n     Customs duty reduction: 5% to nil on crude; 7.5% to 2.5% on petrol and diesel; Excise duty on diesel lowered from Rs4.60 per litre to Rs2 a litre

n     We expect a ~85-100bps increase in the inflation including 25-40bps indirect increase through power and freight costs

n     We expect the move to impact the government finances by ~Rs222bn or 24bps