Published 10:20 IST, March 3rd 2021

Amid rising Petrol, diesel prices, Finance Ministry starts discussion on cutting cost

The Union Finance Ministry has started to discuss the burning issue of rising prices of fuel, which has created a hole in consumers' pockets, as per sources.

India News
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As the demand for reducing taxes on petrol and diesel escalates, the Union Finance Ministry has started to discuss the burning issue which has created a hole in consumers' pockets, as per sources.

"The government is discussing as to what extent the taxes could be cut, and that too, without having much stress on either the Centre or the state government. The discussion has been started among the Ministry officials on how to bring the Centre and government on a platform where relief from high fuel prices can be given to the common man," said sources to ANI.

They also informed that the Nirmala Sitharaman Ministry is looking at all kinds of possible options to handle the imminent crisis and is trying to bring states and the Centre to one platform to ensure an expeditious reduction of the prices.

On February 25, Reserve Bank Governor Shaktikanta Das highlighted how high fuel prices not only impact cars and bike users but also manufacturing, transportation, and other aspects as well. While addressing the 185th Foundation Day Celebration of the Bombay Chamber of Commerce and Industry, he aired his views on how diesel and petrol prices have an impact on the cost side. "They play as cost-push factors across a range of activities. It's not just that passengers who use cars and bikes. High fuel prices also have an impact on the cost of manufacturing, transportation, and other aspects, I am sure the state and central government will take a positive decision in a coordinated manner," the RBI Governor had said.

Petrol and diesel prices across all Indian states mostly remained to be unaltered for the fifth consecutive day. There has been no fluctuation in the rates of fuel that were on a constant high by a rupee or two until last week.

READ | Petrol & Diesel Prices Remain Unaltered For 4th Consecutive Day Across States On Mar 2

READ | On Petrol & Diesel Prices, RBI Governor Suggests Centre & States Hammer Out Tax Reduction