RBI monetary policy: Govt told to cut fuel taxes to ease inflation concerns

GDP projection revised upwards, but lower than Eco Survey's

The Reserve Bank of India (RBI) on Friday suggested that the Union and state governments reduce taxes on petroleum products to provide some relief to customers who are paying record high prices for petrol and diesel.

“Pump prices of petrol and diesel have reached historical highs. An unwinding of taxes on petroleum products by both the Centre and the states could ease the cost-push pressures,” the Monetary Policy Committee (MPC) said.

The statement comes a few days after the Centre imposed an agricultural infrastructure and development cess on petrol and diesel at the rate of Rs 2.5 and Rs 4