Centre-States Must Coordinate To Reduce Fuel Prices: RBI Governor

Speaking on rising fuel prices, Reserve Bank of India (RBI) governor Shaktikanta Das said that the Centre and state governments need to act in coordination to reduce fuel prices, and emphasised on the need for calibrated reduction in taxes.

“There is need for coordinated action between the Centre and states because there are inherent taxes levied by both," said the RBI governor to PTI.

Speaking at a conference organised by the Bombay Chamber of Commerce, Das said that the governments (state and Centre) have to spend a prerequisite target amount to generate revenue in the economy.

The governments come with their set of revenue pressures to help India’s economy recover from the stress of COVID-19, according to Das.

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He added, “So the revenue requirement and the compulsion of the governments are fully understood. But having said that, the impact on inflation is also something which comes in from the fact that petrol and diesel prices do have an impact on the cost of manufacturing, production,” quoted the report.

Currently, petrol in Delhi is priced at Rs 90.58 per litre, while diesel is at Rs 80.97. Last week, petrol price soared to Rs 100.22 a litre in Sri Ganganagar town of Rajasthan.

The RBI Governor also raised the issue of cryptocurrency, and stated that it has conveyed its concerns to the Centre on the same. He added that internally, RBI is working out guidelines for the central bank’s digital currency.

(With inputs from PTI)

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