SBI EcoRap report claims petrol, diesel can be cheaper by up to Rs 12
Economies around the world are being affected extensively by the Corona virus epidemic. Its effect is now falling on production, exports, supplies and prices. However, the central government can get relief on the petrol-diesel front.
Detailed
SBI EcoRap’s report released on Tuesday said that petrol prices in India could be cheaper by Rs 12 and diesel by Rs 10 per liter due to a 30 per cent drop in global crude prices due to the Corona crisis.
However, if both the Center and the state do not want to cut fuel prices, they should not increase excise duty under any circumstances. By doing this, the common people will not get the benefit of softening in prices.
Let us know that in the global market, crude oil prices have reached the level of about $ 30 per barrel. The SBI ECORAP report claimed that only the benefit of excise duty will be available.
Emphasis should be on increasing consumer demand
The report said that the additional revenue the central government should spend to provide relief to the people from the lower strata as the business activity has stopped due to the corona virus. This has created an employment and income crisis in front of them.
Saumya Kanti Ghosh, Chief Economic Advisor of SBI Group, said that with various efforts, the government should insist on increasing consumer demand. Also, a package of relief should be announced to prevent infection of this dangerous virus and generate employment.
Supply chain will be affected
Ghosh said that the increase in the number of people infected with Kovid-19 in India will affect the supply chain, which will affect the economy as well as exports associated with pharmaceutical sectors. Apart from this, there may also be a problem on the direct export front. At the same time, the demand front is expected to have an adverse effect on sectors such as air transport, tourism and hotels. Other areas will also be affected by this.
Rate cut will have adverse effect
Ghosh said that more than rate cuts to RBI
Coordinated policy processes should focus on. However, it will also have an adverse effect if the RBI cuts rates in large amounts. This can result in capital withdrawal. He said that cutting rates beyond a limit will have an impact on the market. Investors will be disturbed by the Indian market.
