Everyone is troubled by the high prices of petrol and diesel in the country. The common man’s budget is deteriorating due to fuel inflation. But people can get a big relief in the coming days.
Everyone is troubled by the high prices of petrol and diesel in the country. The common man’s budget is deteriorating due to fuel inflation. But people can get a big relief in the coming days. This is because the central government can reduce the tax on maize and oil. If the government does this, it will bring down the prices of petrol and diesel.
Decision will be taken after the inflation data of February
According to a Reuters report, the central government can take this step according to the recommendations given by the central bank to reduce rising inflation. It has been said in the report that the final decision on this will be taken only after the CPI based inflation figures for the month of February.
According to IIFL Vice President Anuj Gupta, the government can cut excise duty from Rs 7 to Rs 10. After this, the price of petrol and diesel may fall by Rs 5 to 7 per litre. Anuj Gupta further said that the cheaper petrol and diesel will also depend on how much the OMCs transfer the excise duty cut by the government to the consumer.
How much was the duty cut earlier?
Earlier, on May 21, 2022, Union Finance Minister Nirmala Sitharaman had cut excise duty on petrol by Rs 8 and on diesel by Rs 6 per litre. Due to this, the prices of petrol in the country fell by Rs 9.5 per liter and diesel by Rs 7 per litre.
Retail inflation in the country reached 6.52 per cent in January, which is a three-month record. Because of this, it has become necessary for the government to take some steps to control the rising inflation. After the January CPI-based inflation figures, there is a possibility of further increase in the repo rate in April. The retail inflation figure for the month of January has been above the limit of 6 per cent set by the RBI. This is the first time since the month of October last year that it has exceeded the upper limit of RBI.
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