For every $ per barrel fall in the price of oil, government’s receipts from the energy sector will be lower by $ million. However the budget for fiscal 2000/2001 was based on an average oil price of $ per barrel and prices are unlikely to fall below $ for the remainder of the fiscal year.
In respect of export earnings these exports to the US are not expected to be adversely affected as most of these commodities are sold under long term contractual arrangements.