According to a report government can reduce petrol prices to fight inflation


The news comes just days after Prime Minister Narendra Modi pledged to combat growing inflation in the country during his Independence Day speech.

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 According to a report government can reduce petrol prices to fight inflation.
According to a report government can reduce petrol prices to fight inflation.

 

The administration is considering lowering taxes on gas prices, as well as lowering import levies on pricey products like as cooking oil and wheat.
According to a Bloomberg News report citing persons familiar with the situation, government officials are considering reallocating up to Rs 1 lakh crore from several ministries’ budgets to curb rising food and gasoline expenses.
This announcement comes just days after Prime Minister Narendra Modi committed to bring down the country’s increasing inflation during his Independence Day address.
Prime Minister Narendra Modi will make a decision on revenue reallocation in the coming weeks, and the measures might include lower fuel taxes and lower import tariffs on cooking oil and wheat.
In India, inflation has been a chronic issue since 2022, with just a few months of respite from February to June this year.
If the government implements new measures to combat inflation, it will be the second year in a row that modifications are required to combat inflation. It’s worth noting that the government spent an extra Rs 2 lakh crore last year to protect consumers from increasing inflation.
Analysts and even the Reserve Bank of India (RBI) anticipate that inflation would stay elevated in August, with the direction determined by changing weather conditions.
Inflation could provide a significant challenge to the BJP-led NDA government, which is facing a series of critical assembly elections in the run-up to the vital general elections in 2024.
If inflation continues to spiral out of control, it might seriously harm the poorer populace, which has generally supported the ruling party because of its emphasis on social projects and rural development.

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