Elections are far away, then why was the Modi government forced to cut tax on petrol and diesel?

Giving a big relief to the common citizens, it was decided by the Central Government to cut the excise duty on petrol and diesel on Saturday. The Narendra Modi government at the Center had decided to cut the excise duty on petrol by Rs 8 per liter and on diesel by Rs 6 per liter yesterday i.e. on Saturday. The last time the decision to cut excise duty was taken was when assembly elections in five states, including Uttar Pradesh, were near. As soon as the election results came, there was a sharp jump in the prices of petrol-diesel to LPG. All the opposition parties, including the Congress, also accuse the BJP that the Narendra Modi government at the Center takes decisions after seeing the elections. In such a situation, the question arises that the assembly elections of Gujarat and Himachal are going to be held at the end of this year, so what is the reason why the central government had to take this decision in the midst of global instability due to Russia and Ukraine war? Let’s understand one thing

Highest wholesale inflation rate in three decades

The April wholesale inflation data added to the government’s concerns. Breaking all its old records, the wholesale inflation rate crossed 15% in April. According to government data, the wholesale inflation rate stood at 15.08% in April. Which is the highest in the last three decades. Let us tell you, since April 2021, the wholesale inflation rate has remained beyond the doubles.

People are suffering due to rising inflation in villages

Villagers are more worried about inflation than cities. As per the data, the retail inflation rate in the village was 7.66% in the month of March. At the same time, it increased to 8.38% in the month of April, while the inflation rate in the villages was 3.75% in the month of April a year ago. That is, after a year, inflation doubled. Inflation in cities stood at 7.09% in April 2022. Which is more than the villages.

Due to the war between Russia and Ukraine, the supply of edible oil has been affected around the world. But after the Indonesian government banned the export of palm oil, the prices of edible oil saw a further increase. However, now this restriction has been lifted by the government there. This decision will come into effect from May 23, after which it is expected that there will be a cut in the prices of edible oil.

Increase in prices of spices

(prices Rs per kg)

The decision was taken to give relief to the people suffering from all-round inflation!

From LPG, CNG to bath soap, there has been a big increase in the prices. Due to which the general public is very upset. To give relief to the common citizens, it has been decided by the Modi government to cut the prices of petrol and diesel. Because the effect of increase in the prices of petrol and diesel is indirectly visible everywhere. As the fare of the vegetable cart coming to the market is expensive, its effect is clearly visible in the price of the vegetable. The government expects that after the reduction in excise duty, the states will also reduce their share of VAT, which will further reduce the prices of petrol and diesel.

Farmers breathed a sigh of relief!

Farmers have also heaved a sigh of relief due to the cut in diesel prices. Farmers engaged in preparations for planting paddy crop will now be able to save more if diesel becomes cheaper. Paddy crop requires more water than other crops.

Subsidy of Rs 200 on LPG also

Apart from petrol and diesel, a subsidy of Rs 200 has also been announced by the central government on LPG cylinders. 9 crore beneficiaries of Ujjwala Yojana will benefit from this.

RBI is also under pressure

Recently, there has been an increase in the repo rate from the Reserve Bank of India. The central bank has increased the repo rate by 40 bps to 4.40%. This will increase your EMI now. Let us tell you, this decision was taken by the Reserve Bank to control the inflation rate. It is feared that the repo rate may increase once again.