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Petrol, diesel price hike: RBI governor calls for reduction of indirect tax on fuel

Reserve Bank of India Governor Shaktikant Das called for indirect taxes on petrol and diesel to reduce fuel prices at a reasonable level. Petrol and diesel prices in India have been on the rise for the past one week. “The rise in crude oil prices and the impact of indirect tariff hikes on petrol and diesel and inflation in goods and services, especially transport and inflation, in December, excluding food and fuel, pushed CPI inflation to 5.5% on Monday,” he said. The published MPC said within minutes.

“Steps towards increasing supply, especially in a coordinated manner between the Center and the States – enabling calibrated unwinding of high indirect taxes on petrol and diesel, are important to further increase the costly pressures of the economy,” it added. Central and state taxes are more than 60% of the retail price of petrol and 54% of diesel.

Petrol and diesel prices remained unchanged in the country for the second day in a row on Monday. On February 20, petrol prices were hiked by a record 39 paise per liter and diesel by 37 paise. This was the biggest increase of all time since oil companies started revising rates on a daily basis in 2017.

In Mumbai, the price of petrol has touched ₹ 97 per liter, the highest ever, and the price of diesel has crossed ₹ 88 per liter. In Delhi, petrol price has gone up by ₹ 90.58. Diesel price has risen to ₹ 80.97 in the national capital. In Rajasthan and some parts of Madhya Pradesh, petrol prices have already crossed Rs 100.

Petrol and diesel prices are revised daily in line with the benchmark international prices and foreign exchange rates.

On the rise in fuel prices, Finance Minister Nirmala Sitharaman said on Saturday, “It is a matter of great concern where no answer can be conveyed to anyone without a reduction in fuel prices.” “It is also a fact that (worldwide) crude rates have recovered since November,” he added. “Both the Central and the states should talk about reducing retail fuel prices at a reasonable level for consumers,” he said.

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