Petrol and diesel prices have made it difficult for the RBI. RBI has said that this will increase the cost of manufacturing and the risk of inflation is also exposed.
The RBI is also looking worried due to the possibility of rising inflation. In fact, the rapid increase in the prices of petrol and diesel in recent times and their prices have reached a record level, this has caused the RBI to worry about inflation. If the prices of petrol and diesel are not controlled, it can reduce the impact of the pace in the economy.
‘Increasing inflation will increase manufacturing costs’
RBI Governor Shaktikanta Das said that the cost of manufacturing could increase due to the cost of petrol and diesel being expensive. This can have an impact on inflation. In a program on Thursday, he clearly said that the central and state governments will have to take a decision on tax cuts on petrol and diesel together.
He said that at the moment the earnings of both the state and the center have been affected. Due to declining earnings, neither the state is in a state of tax deduction nor at the center. In such a situation, inflation of petrol and diesel cannot be expected to decrease.
Petrol crosses Rs 100 in many cities of the country
Crude oil prices have increased recently. This has made oil expensive. But the tax rates levied on them from both the Center and the state are quite high. This is the reason that petrol prices have also crossed Rs 100 per liter in many cities of the country.
The price of diesel has also crossed Rs 90 per liter. The RBI aims to keep inflation within the range of four to five per cent. But if the prices of petrol and diesel are not cut, the retail inflation rate may be uncontrollable. In addition to the income of the common man, the economic growth rate will also be negatively affected.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.