In a major relief to the people, the Narendra Modi government announced rate cuts a day ahead of Diwali. The most sizeable cut in recent times ended the long period of petrol and diesel prices, which stood over Rs 90 to Rs 115 per litre. REASONS AND IMPACT OF LEVY CUTS Within a few hours of the centre facing seething …
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 …
