• hello@whatnews.in
  • Home
  • Business
  • World
  • Contact US
Home»business»Petrol, Diesel Price Cut Anytime Soon? Not Likely
business

Petrol, Diesel Price Cut Anytime Soon? Not Likely

whatnewsBy whatnewsJune 21, 2022No Comments3 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Email


In Delhi, a litre of petrol costs Rs 96.72, while the diesel rate stands at Rs 89.62 per litre.

New Delhi:

Why a further cut in petrol and diesel prices is not likely anytime soon? Fuel rates have been kept steady for a month after the government’s much-needed move to cut excise duty on May 21. A monthly economic report released by Finance Ministry showed that the government revenues have taken a hit following the reduction fuel excise duty.

This indicates that a further cut may not be on the cards as it could pose “risk to budget level of gross fiscal deficit”.

Currently, a litre of petrol costs Rs 96.72 in the national capital, while the diesel rate stands at Rs 89.62 per litre.

Observing that the capital expenditure (capex) budget for 2022-23 (FY23) is expected to underpin growth, the Finance Ministry report said an upside risk to the budgeted level of gross fiscal deficit has emerged following cuts in excise duties on diesel and petrol.

“Increase in the fiscal deficit may cause the current account deficit to widen, compounding the effect of costlier imports, and weaken the value of the rupee thereby further aggravating external imbalances, creating the risk (admittedly low, at this time) of a cycle of wider deficits and a weaker currency,” the report further said.

A fiscal deficit is the shortfall of Centre’s income against its spending, while current account deficit records the value of exports and imports of goods and services.

India is among the world’s biggest oil-importing nations, and the consumers are price-sensitive.

No Respite In Global Crude Rates

Globally, crude oil prices are also rising amid tight supply concerns over slowing global economic growth. Brent crude futures are trading near $115 levels.

“Supply concerns are unlikely to subside unless there is a resolution to the Russia-Ukraine war, or unless we see a sharp rise in supply from either U.S. or OPEC,” Madhavi Mehta, Commodity Research Analyst at Kotak Securities, told news agency Reuters.

What is likely to further dent global sentiment is the U.S. plans to impose further sanctions on Russia for its invasion of Ukraine, underscoring sentiment the war on the edge of Europe is not likely to abate anytime soon.

U.S. Treasury Secretary Janet Yellen has said that the America is in talks with Canada and other allies globally to further restrict Moscow’s energy revenue by imposing a price cap on Russian oil without causing spillover effects to low-income countries.



Source link

Post Views: 8
anytime cut Diesel Diesel price diesel price cut Diesel prices Diesel rates fuel price cut Fuel rates Petrol Petrol price petrol price cut Petrol prices Petrol rates price
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleSolis Yanmar to launch 3 tractors in Turkey
Next Article New date for Bihar BEd CET 2022 exam to be announced soon on biharcetbed-lnmu.in, Know details here
whatnews
  • Website

Related Posts

Towards a $5 trillion economy: Lot depends on external and domestic factors

June 25, 2022

Tamil Nadu rolls out initiatives for industries to adopt new technologies

June 25, 2022

GST Council likely to consider changes in monthly tax payment form

June 25, 2022
Add A Comment

Leave A Reply Cancel Reply

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

Advertisement
About Us
Privacy Policy
Contact Us
© Copyright 2022. All rights reserved.