Fuel price hike not only affects those with cars, bikes: RBI Guv Shaktikanta Das
Reserve Bank of India Governor Shaktikanta das on Thursday said fuel price hike has a far-reaching impact, beyond those who use cars and bikes. "Diesel and petrol prices do 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," Das said delivering the keynote address of the 185th foundation day celebration of the Bombay Chamber of Commerce and Industry.
Calling for coordinated action by the Centre and the states to reduce fuel price, Das said, "There is a need for coordinated action between Centre and states to reduce taxes because there are indirect taxes levied both of them. We do realise that states and Centre have their revenue pressures and require high sums of money to enable the country and people to come out Covid-19 stress."
"The past one year has witnessed unimaginable misery and agony across the world. Governments and central banks across the globe unleashed unconventional and conventional policy support to fight the devastating, negative impact of the pandemic," Das said beginning his speech.
Talking about the areas in which India made growth amid lockdown, Das said digital penetration in India has scaled a new high. "Time has come to leverage its applications while at the same time strengthening its infrastructure. With 1.2 billion wireless subscribers and 750 million internet subscribers, India is second largest and one of the fastest-growing digital markets," he said.
On the resurgence of Covid-19 cases in the country, the RBI governor said Covid-19 war of 2020 has been won and the war continues in 2021.