Fuel price rise does not impact only those who use cars, bikes: RBI Governor

New Delhi, Feb 25: RBI Governor, Shaktikanta Das said on Thursday that the fuel price hike has a far reaching impact, beyond those who use cars and bikes.

He said that the diesel and petrol prices do have an impact on the cost side. They play as cost push factors across a range of activities.

It is not just that passengers who use cars and bikes are affected, but the rise has an impact on cost manufacturing, transportation and other aspects. The comments were made while delivering the key note address of the 185th foundation day celebration of the Bombay Chamber of Commerce and Industry.

There is a need for coordinated action between Centre and states to reduce taxes because there are indirect taxes levied both of them. We 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." Das said.

He also said that 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.

He further said that the MSME sector in India has emerged as the growth engine of the economy. He also called on corporates to invest in the health sector.