Hindustan Hindi News

Relief news: Petrol-diesel will soon be cheaper, government can make big decision

The common man is very upset by the rising prices of petrol-diesel. In such a situation, if you find out that there may soon be less petrol and diesel, then you will certainly be glad to know. In fact, according to Goldman Sachs Group Inc., if global oil prices rise further, India may need to cut fuel taxes further to ease inflationary pressures, a move that will slightly reduce the country’s revenue collection.

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Shantanu Sengupta, senior Indian economist at Goldman Sachs, said in an interview with Bloomberg Television that if there is a high price for crude oil, it is directly reflected in the price of petrol and diesel at the gas pump. If oil hits $105 a barrel by the end of the year, the Indian government will cut excise taxes. Brent oil hovers around $90 a barrel amid tensions between Russia and Ukraine. A group of Wall Street banks, including Goldman, have projected oil to hit $100 a barrel this year as global markets pick up.

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India cut retail fuel taxes in November to relieve consumers of record prices for petrol and diesel. Sengupta said a further tax cut could lead to a slight cut in excise tax revenues in the next fiscal year, which starts April 1, but a strong recovery in government revenues is generally expected. On the inflation front, oil prices would clearly be hurt, he added. He said he expects the Reserve Bank of India to raise its key rate by a total of 75 basis points this calendar year.

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