High oil prices strain fiscal balance: revenue gains offset by FEPC subsidy costs

Rising oil prices boost fiscal revenues from the oil sector but simultaneously increase obligations of the FEPC (Fuel Price Stabilization Fund), creating a fiscal double-edged sword. The net impact on the national accounts is uncertain, as higher revenues may be offset by increased subsidy expenditures. This matters because sustained high oil prices could widen fiscal deficits or force policy adjustments.