The price of petrol-diesel in the country is at its record level. Consumers are waiting for the softening in prices. Meanwhile, the Reserve Bank (RBI) Governor Shaktikanta Das has suggested a measure, which can reduce the prices of petrol and diesel. In fact, RBI Governor Das said in an event organized by the Bombay Chamber of Commerce on Thursday that central and state governments should make joint efforts to reduce taxes on petrol and diesel to reduce fuel prices. It is important to take steps together because both the central and state governments collect taxes on petrol and diesel. Let us say, petrol is being sold at Rs 100 per liter in many cities of the country. Whereas for a liter of diesel, you have to spend up to Rs 94.
The RBI governor said that the center and the states are under pressure from their respective revenue. Governments need to increase government spending more to get the country and people out of the pressure of COVID-19 Pandemic. In such a situation, the need for revenue and the compulsion of governments are fully understood. But at the same time it also needs to be understood that it also has an impact on inflation rate.
Let us know, the central government is currently charging about Rs 33 per liter on petrol and Rs 31.83 per liter on diesel. The increase in excise duty on petrol and diesel increases by about Rs 14 thousand crore annually in the exchequer. India imports about 80 percent of its crude oil.
MSME becomes growth engine
RBI Governor Das said that the high prices of petrol and diesel have an impact on the cost of manufacturing production. Manufacturing is recovering in the growth of the sector. With this, the MSME sector of the country has come forward as the engine of growth of the economy. The governor also stressed the need for companies to invest more in the healthcare sector. He said that India is on the threshold of moving forward on the path of success.
Why is petrol and diesel getting expensive?
According to energy expert Narendra Taneja, the increase in prices of petrol and diesel are due to three main reasons. First, the prices of crude are continuously increasing. In the last two months, about 65 percent crude has become expensive. Secondly, work is stalled in many refineries of the world, due to which supply is being reduced. Third, the demand for petrol and diesel is more in the international market. Demand is usually high in winter. According to that supply is not being done.
Be aware, the rise in oil prices in the international market is also being seen by Saudi Arabia due to additional cuts in production of one million barrels per day during February and March. Saudi Arabia has promised additional cuts in production as part of an agreement between the Organization of the Petroleum Exporting Countries (OPEC) and its partners, also known as OPEC +, and includes Russia. Due to this, the prices of crude have crossed $ 65 per barrel, which is the highest in a year.