New Delhi: With the fear of rising inflation, the general public as well as the RBI is now worried. In fact, the rapid increase in the prices of petrol and diesel in recent times has made a record, this has also started worrying the RBI on the inflation front. If the prices of petrol and diesel are not controlled, it can reduce the impact of the pace in the economy.
RBI Governor Shaktikanta Das has said that the cost of manufacturing can increase due to the cost of petrol and diesel being expensive. It can have an impact on inflation. In a program on Thursday, he made it clear that the central and state governments will have to take a decision on tax cuts on petrol and diesel together. He said that the income of both the state and the center has been affected at this time. Due to a decline in earnings neither state nor center is in condition to cut tax. In such a situation, the inflation of petrol and diesel cannot be expected to decrease.
The prices of crude oil have increased recently. This has made oil expensive. Also, the tax rates on oil from both the Center and the state are quite high. This is why petrol prices have crossed Rs 100 per liter in many cities of the country. The price of diesel has also crossed Rs 90 per liter. RBI aims to keep inflation within the range of four to five percent. But if the prices of petrol and diesel were not cut, the retail inflation rate could be uncontrollable. In addition to the income of the common man, the economic growth rate will also be negatively affected.
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