NEW DELHI: Alarmed by the steep rise in petrol and diesel prices, which is adding to inflationary pressures, RBI Governor Shaktikanta Das on Friday, October 8, 2021, nudged the Centre to cut fuel tax. “Efforts to contain cost-push pressures through a calibrated reversal of the indirect taxes on fuel could contribute to a more sustained lowering of inflation and an anchoring of inflation expectations,” he said.
Noting that fuel tax is something the Centre has to act upon, Das said RBI is in constant touch with the government. “On the petrol and diesel front, we have flagged the issue... now it is for the government to consider all the aspects and take a decision beyond that I have nothing to add,” he added.
After a three-week halt, fuel prices have started rising in tandem with Brent crude prices. Prices of petrol and diesel touched fresh highs on Friday after they were increased for the fourth straight day. In the national capital, the petrol price rose by 30 paise to Rs 103.54 a litre, while diesel was sold at Rs 92.12 a litre. In the financial capital Mumbai, petrol price on Friday stood at a whopping Rs 109.54 while diesel price was Rs 99.92.