Nirmala Sitharaman Fuel Price Hike: Finance Minister Nirmala Sitharaman has given a big statement amid the rising prices of petrol and diesel. He said that the government will suffer a loss of Rs 1 lakh crore by reducing excise duty. Know what the Finance Minister said on inflation and fuel prices.
Fuel Price Hike: The continuously increasing prices of petrol and diesel in the country have increased the concern of the common people. Inflation is already affecting every expenditure from kitchen to travel and now the continuous increase in fuel prices has further spoiled people’s budget. Meanwhile, Nirmala Sitharaman has given a big statement regarding reducing tax on petrol and diesel.
On Monday, the Finance Minister clearly said that if the government reduces excise duty on petrol and diesel, it could lead to a loss of revenue of about Rs 1 lakh crore. He also said that amid the current global situation, it is important to avoid creating an atmosphere of fear and despair in the country.
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Prices increased for the fourth time in 10 days
The prices of petrol and diesel have increased once again in the country. This is believed to be the fourth increase in the last 10 days. After the latest increase, the price of petrol increased by Rs 2.61 per liter, diesel became costlier by Rs 2.71 per liter. The impact of increasing fuel prices is not limited to just drivers. It also has a direct impact on the prices of transport, food items and everyday goods.
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‘The country cannot afford to spread fear’
Speaking at the 37th anniversary program of Small Industries Development Bank of India (SIDBI), Nirmala Sitharaman said that the country needs positive thinking and trust at this time. He said that some people are presenting the current situation as if everything is falling apart, whereas the reality is different. The Finance Minister stressed that India’s domestic economy is still in a strong position and it is extremely important to maintain confidence among the people.
Finance Minister told ‘three F’
In her address, Sitharaman talked about focusing on the “three F” amid the current economic challenges. These include:
- Fuel
- Fertilizer
- Forex
He said that due to the Middle East crisis, pressure has increased at the global level and it is affecting the economy of many countries. Fertilizer prices have risen sharply, while high gold prices are also creating economic pressure.
Can common people get relief?
At present, there has been no indication from the government about reducing excise duty. In such a situation, there is little hope of getting any major relief in the prices of petrol and diesel in the near future. However, experts believe that if the prices of crude oil fall in the international market, then there may be some relief in the coming time. But at present, due to global tension and rising costs, the government is emphasizing on maintaining revenue balance.
Why is excise duty important?
Excise duty constitutes a major part of the prices of petrol and diesel. The central government collects revenue on a large scale from this tax, which is used for infrastructure, schemes and development works. This is the reason why reducing it is not considered an easy decision for the government. The Finance Ministry argues that a major tax cut can have a huge impact on government income.
Concern increased amid inflation
Due to continuously increasing fuel prices, the pressure on the pockets of common people is increasing. This situation is becoming a matter of concern especially for the middle class and daily wage earners. Now people’s eyes are fixed on whether the government takes any major step to provide relief in the coming days or not.
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