RBI Gov Shaktikanta Das flags concerns on high petrol taxes, says up to government to take further decision
3 years, 2 months ago

RBI Gov Shaktikanta Das flags concerns on high petrol taxes, says up to government to take further decision

Firstpost  

It can be noted that the government had hiked duties and cesses on fuels like petrol and diesel to record levels after a sharp dip in global crude prices last year which resulted in higher revenue collections Mumbai: After flagging concerns surrounding the inflationary impact of the high indirect taxes on fuels for the second time, RBI Governor Shaktikanta Das on Friday said it is now for the government to take a decision on the issue, which is pinching common citizens. Das, who had earlier flagged the issue publicly for the second consecutive time in as many policy announcements, said that the government has acted on other supply side issues like pulses and edible oils. It can be noted that the government had hiked duties and cesses on fuels like petrol and diesel to record levels after a sharp dip in global crude prices last year which resulted in higher revenue collections. “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,” Das added.

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History of this topic

RBI maintains calm against global noise
4 months, 2 weeks ago

RBI maintains calm against global noise

Live Mint  

The Reserve Bank of India’s bi-monthly monetary policy orchestrated on 8th August 2024 ensured that the “elephant” was deep in the forest before changing the policy. The RBI’s Monetary Policy Committee voted with 4:2 to keep the policy repo rate and stance unchanged at 6.50% and “withdrawal of accommodation” respectively. Like last policy, the two of the external MPC members, …

RBI’s battles with inflation
10 months, 2 weeks ago

RBI’s battles with inflation

Hindustan Times  

That the Monetary Policy Committee would not change policy rates or its stance in its February meeting was widely expected. One, Reserve Bank of India seems to believe, perhaps rightly, that the monetary tightening unleashed by it in the last two years — the policy rate has been increased by 250 basis points — has not hurt growth. Despite core …

RBI flags high inflation as key risk to macroeconomic stability, vows to bring inflation to 4% after status quo on rates
1 year, 2 months ago

RBI flags high inflation as key risk to macroeconomic stability, vows to bring inflation to 4% after status quo on rates

The Hindu  

The Reserve Bank of India views ‘high inflation as a major risk to macroeconomic stability and sustainable growth’, and accordingly monetary policy has been resolutely focused on aligning inflation to the 4% target on a durable basis, RBI Governor Shaktikanta Das said on Friday as he announced the Monetary Policy Committee’s unanimous decision to keep the policy repo rate unchanged …

RBI MPC: Keeping 'Arjuna's Eye' On Inflation, Expected To Be Above Target In 2023
1 year, 6 months ago

RBI MPC: Keeping 'Arjuna's Eye' On Inflation, Expected To Be Above Target In 2023

News 18  

RBI MPC June 2023: Announcing the decisions of Monetary Policy Committee meeting, RBI Governor Shaktikanta Das on June 8 said headline inflation is above the target of 4% and expected to remain so during rest of the year. Meanwhile, according a Reuters poll of economists, consumer price inflation in India likely cooled to a 20-month low in May as food …

Boxed in: The Hindu Editorial on need for inflation control as top policy priority
2 years, 2 months ago

Boxed in: The Hindu Editorial on need for inflation control as top policy priority

The Hindu  

The Reserve Bank of India’s rate decision on Friday was ultimately inevitable. RBI Governor Shaktikanta Das cited the ‘aggressive monetary policy actions and even more aggressive communication from advanced economy central banks’ as a third shock -- following the pandemic and Russia’s invasion of Ukraine — which he said had thrust the ‘global economy into the eye of a new …

RBI to remain flexible while aiming to tame inflation: Governor Shaktikanta Das
2 years, 5 months ago

RBI to remain flexible while aiming to tame inflation: Governor Shaktikanta Das

The Hindu  

Reserve Bank of India will continue calibrating policy to preserve and foster macroeconomic stability while bringing down inflation and will remain flexible in its approach, Governor Shaktikanta Das said on Saturday. The global economy is going through an uncertain time and concerns around growth and inflation persist, but the central bank believes that there could be some respite from rising …

Govt mindful of inflation situation, says RBI Governor Das
2 years, 6 months ago

Govt mindful of inflation situation, says RBI Governor Das

The Hindu  

Reserve Bank of India Governor Shaktikanta Das on Wednesday said the government is "mindful" of the current inflation situation, and it is up to the Centre to take further supply-side measures to contain the price rise situation. "I am sure the government is mindful of the current inflation situation and it is for the government to decide on further supply-side …

All hands on deck: On Centre’s duty cut on petro products
2 years, 7 months ago

All hands on deck: On Centre’s duty cut on petro products

The Hindu  

The Union government’s decision on Saturday to cut the excise duty on petrol and diesel by ₹8 and ₹6, respectively, is a belated acknowledgement that April’s multi-year highs in inflation were spurred in significant measure by high fuel prices. With the price of the Indian basket of crude oil having risen by more than 33% since November, and with a …

Inevitable increase: The Hindu Editorial on RBI’s interest rate hike
2 years, 7 months ago

Inevitable increase: The Hindu Editorial on RBI’s interest rate hike

The Hindu  

The penny has dropped. After stubbornly holding off from acting to tame inflation, which has steadily eroded consumers’ purchasing power and derailed broader economic momentum, the RBI’s rate setting panel on Wednesday announced an ‘off-cycle’ increase in benchmark interest rates. RBI Governor Shaktikanta Das rationalised that letting inflation remain elevated at current levels for too long risked ‘de-anchoring inflation expectations’ …

Why Indian govt may cut tax on petrol, diesel, according to Morgan Stanley
2 years, 9 months ago

Why Indian govt may cut tax on petrol, diesel, according to Morgan Stanley

Live Mint  

Should fuel prices rise sharply due to rise in oil prices, Upasana Chachra of Morgan Stanley in a recent note stated that she expects the Indian government to consider a reduction in fuel excise duty cut to dampen the effect on inflation. However, given that higher oil prices would potentially weigh on growth and tax collection as well, any additional …

Fuel price cut in consonance with national mood
3 years, 1 month ago

Fuel price cut in consonance with national mood

New Indian Express  

Strange, but fuel prices have the duality of bringing fortune and misfortune. Interestingly, despite the surging pump prices, an IMF official recently recommended maintaining existing fuel taxes in India, as a reduction disproportionately benefits higher-income households, making it ‘highly regressive’. Truth is, the chasm between headline and household inflation is wide and the Centre’s pick to go with the latter …

Tightrope walk: The Hindu Editorial on reining in inflation and RBI’s credibility
3 years, 4 months ago

Tightrope walk: The Hindu Editorial on reining in inflation and RBI’s credibility

The Hindu  

Governor Shaktikanta Das’s statement accompanying the RBI’s latest policy announcement highlights the bind that monetary authorities find themselves in. While the central bank’s growth supportive actions — maintaining the benchmark interest rate at a decade low, ensuring ample liquidity and an accommodative policy stance — are yet to help engender a meaningful recovery, inflation continues to disquietingly hover around the …

Can reducing cess levies ease high fuel prices?
3 years, 5 months ago

Can reducing cess levies ease high fuel prices?

The Hindu  

The story so far: Ratings agency ICRA recently postulated that the government had room to cut cess levies on retail prices of petrol and diesel, thereby easing prices. Would a reduction in fuel cesses affect the government’s ability to pay interest and principal on oil bonds issued to public oil marketing companies as compensation for subsidies? The agency has estimated …

India's Inflation at 'Uncomfortably High' Level, Says Moody's Analytics
3 years, 8 months ago

India's Inflation at 'Uncomfortably High' Level, Says Moody's Analytics

News 18  

India's inflation is at "uncomfortably high" level, which is an exception among Asian economies, Moody's Analytics said on Tuesday. Higher fuel prices will keep upward pressure on retail inflation and keep the RBI from offering further rate cuts, said Moody's Analytics, a financial intelligence company. Core inflation was up 5.6 per cent in February, from 5.3 per cent in January, …

Need coordinated action between centre, states on tax reduction in fuel prices: RBI Governor
3 years, 10 months ago

Need coordinated action between centre, states on tax reduction in fuel prices: RBI Governor

India TV News  

Reserve Bank of India Governor Shaktikanta Das on Thursday said there is a need for coordinated action between the centre and state governments to reduce taxes on petrol and diesel prices. "There is a need for coordinated action between the centre and the states because there are inherent taxes levied by both," the governor said, adding that calibrated reduction of …

For petrol, diesel price reduction, centre and state need to coordinate says RBI
3 years, 10 months ago

For petrol, diesel price reduction, centre and state need to coordinate says RBI

Hindustan Times  

Reserve Bank of India Governor Shaktikanta Das on Thursday said there is a need for coordinated action between the centre and state governments to reduce taxes on petrol and diesel prices. The governor said both the centre and the state governments have their revenue pressures and they are required to spend high sums of money to enable the country and …

RBI's outgoing MPC flags inflation concern, calls for more fiscal support
4 years, 4 months ago

RBI's outgoing MPC flags inflation concern, calls for more fiscal support

India Today  

Rising inflation has complicated the task of India’s monetary policy committee and could limit its ability to support growth, its August meeting minutes showed on Thursday, while it also called on the government for more fiscal action. On August 6, the MPC unanimously decided to hold interest rates steady while keeping its stance accommodative as long as necessary to revive …

Will He, Won’t He? Covid-19 Fuels Rate Cut Hopes as Shaktikanta Das Chairs RBI’s Policy Review Today
4 years, 4 months ago

Will He, Won’t He? Covid-19 Fuels Rate Cut Hopes as Shaktikanta Das Chairs RBI’s Policy Review Today

News 18  

India's worsening economic outlook as coronavirus cases soar has raised hopes that the Reserve Bank of India will cut interest rates at its policy review on Thursday, in spite of inflationary pressures. The six-member Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, is scheduled to announce its decision at noon at the body’s 24th meeting. The RBI had already …

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