Ever rising in the fuel prices in the previous weeks has taken petrol to cross historic high levels of Rs 100 a liter in several cities across the country. It is a rising concern on why the Government is not in a position to control.
In Mumbai, the petrol price is just Rs 3 per liter short of (Rs 97.34 a liter) touching the three-digit mark of Rs 100 per liter for the very first time ever. Diesel price in the city is closing on Rs 90 a liter (Rs 88.44 per liter). The petrol and diesel prices have increased 25 times in 2021 with the two auto fuels increasing by Rs 7.22 and Rs 7.45 per litre respectively so far this year.
FM Nirmala Sitharaman commented on rising fuel prices and the heavy taxes on fuel, and said, “Reducing taxes on petrol and diesel is a dharam sankat (dilemma).” She emphasised on how taxes are an important source of revenue for the government. She said that for the burden on customers to reduce, both Centre and states need to talk.
At the same line of the FM’s vision, RBI Governor Shaktikanta Das on Thursday said that the Centre and state governments should coordinate to bring down the fuel prices since both levy taxes on fuel. “We do realise that states and Centre have their revenue pressures and require high sums of money to enable the country and people to come out of COVID-19 stress,” he added.
They play as cost-push factors across a range of activities. It’s not just that passengers who use cars and bikes. High fuel prices also have an impact on the cost of manufacturing, transportation and other aspects,” RBI Governor Shakti Kant Das said delivering the keynote address of the 185th foundation day celebration of the Bombay Chamber of Commerce and Industry.
Calling for coordinated action by the Centre and the states to reduce fuel price, Das said, “There is a need for coordinated action between Centre and states to reduce taxes because there are indirect taxes levied both of them. We do realise that states and Centre have their revenue pressures and require high sums of money to enable the country and people to come out Covid-19 stress.”
Talking about the areas in which India made growth amid lockdown, Das said digital penetration in India has scaled a new high. “Time has come to leverage its applications while at the same time strengthening its infrastructure. With 1.2 billion wireless subscribers and 750 million internet subscribers, India is second largest and one of the fastest-growing digital markets,” he said.
