RBI Governor calls for fuel tax cut, warns inflation

Shaktikanta Das

Mumbai: Reserve Bank of India Governor Shaktikanta Das has shared his views on the fuel price hike across India.

Warning of an inflation crisis, Shaktikanta Das urged the government to cut fuel prices. “States and Centre must co-ordinate and cut fuel taxes as high fuel costs are contributing to high inflation; High indirect taxes on petrol and diesel,” he said.

“CPI inflation excluding food and fuel remained elevated at 5.5 per cent in December, due to inflationary impact of rising crude oil prices and high indirect tax rates on petrol and diesel, and pick-up in inflation of key goods and services, particularly in transport and health categories,” the RBI Governor said further.

He added: “Proactive supply-side measures, particularly in enabling a calibrated unwinding of high indirect taxes on petrol and diesel – in a co-ordinated manner by centre and states – are critical to contain a further build-up of cost-pressures in the economy.”

 

NT Bureau