Petrol, diesel price hike: RBI governor calls for reduced indirect taxes on fuel -Anulekha Ray
* Central and state taxes make up for 60% of the retail selling price of petrol and over 54% of diesel
* On 20 February, petrol price was hiked by record 39 paise per litre and diesel by 37 paise a litre
Reserve Bank of India governor Shaktikanta Das called for reduced indirect taxes on petrol and diesel to contain the fuel prices at a reasonable level. Petrol and diesel prices in India have witnessed a steep climb since the past one week. "CPI inflation excluding food and fuel remained elevated at 5.5% in December, due to inflationary impact of rising crude oil prices and high indirect tax rates on petrol and diesel, and pick-up in inflation of key goods and services, particularly in transport and health categories," RBI governor said in the MPC minutes, published on Monday.
"Proactive supply side measures, particularly in enabling a calibrated unwinding of high indirect taxes on petrol and diesel – in a co-ordinated manner by centre and states – are critical to contain further build-up of cost-pressures in the economy," he further mentioned. Central and state taxes make up for 60% of the retail selling price of petrol and over 54% of diesel.
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Livemint.com, 22 February, 2021, https://www.livemint.com/news/india/petrol-diesel-price-hike-rbi-governor-suggests-reducing-indirect-taxes-on-fuel-11613995224952.html