RBI: People lightened by oil prices, central bank advocates tax cut on petrol and diesel

There is an outcry over the prices of petrol and diesel in India. The ever-increasing prices have put people at ease. Customers in the country are paying almost three times the base price of petrol and diesel i.e. X factory. Concerned over the rise in fuel prices, today Reserve Bank of India (RBI) Governor Shaktikanta Das indirectly urged the government to cut taxes on petroleum products. Das said that 'Efforts to contain cost-push pressures through a calibrated reversal of indirect taxes on fuels could contribute to a more sustained reduction of inflation.'

Tax should be cut on petrol and diesel

Das said that the country is in a better position today as compared to the last MPC meeting. There are strong signs of growth and the trend of inflation is better than expected. On inflation, he said it is lower than RBI's estimates but core inflation is worrying. Tax on petrol and diesel should be cut to keep inflation under control.

Petrol and diesel prices increased again today

It is to be known that the prices of petrol and diesel have increased for the third day on behalf of the state-owned oil companies. Today, the price of diesel has increased from 34 to 37 paise, while the price of petrol has increased by 26 to 30 paise. In Delhi, the price of petrol is Rs 103.54 while the price of diesel is Rs 92.12 per liter. The price of petrol in Mumbai is Rs.109.54  and the cost of diesel is Rs.99.92  per liter. Petrol in Kolkata costs Rs 104.23 while diesel costs Rs 95.23 per liter. At the same time, petrol in Chennai is Rs.101.01 a liter and diesel is Rs.96.60 a liter. The price of petrol has crossed Rs 100 in Madhya Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Odisha, Jammu, and Kashmir, and Ladakh. Petrol price is the highest in Mumbai.

CPI inflation may remain at 5.3 percent in FY22

On inflation, Das said that in the financial year 2021-2022, CPI inflation is likely to be 5.3 percent. It was estimated at 5.7 percent in the last meeting. Inflation may be 5.1 percent in the second quarter, 4.5 in the third quarter, and 5.8 percent in the fourth quarter. At the same time, the central bank said that in the first quarter of the financial year 2022-2023, CPI inflation is likely to be 5.2 percent.