RBI’s State of the Economy Report
The Reserve Bank of India has recently published its State of the Economy Report. The report highlights that, the Indian state refiners’ daily gasoline sales in February 2021 have increased from 1.5% from the year 2020. According to the report, this is the slowest pace of growth in the six months as record-high retail prices have hit the consumption.
Key Findings of the report
The report further highlights that,
- The State-refiners’ daily diesel sales were decreased by 5.3 % in the month of February 2021. The diesel sales are closely related to the economic growth and it account for around 40% of overall refined fuel sales in the country. This decline is the largest decline in three months.
- As per the report, gasoline and gasoil prices in India have increased to its record highs. This increase in mirroring the global markets. Taxes of the retail gasoline prices accounts for about 61% while for the diesel prices it accounts for 56%.
- The industry source showed that, State fuel retailers had sold 2.22 million tonnes of gasoline while they sold 5.81 million tonnes of diesel in February 2021.
- State companies such as the Bharat Petroleum, Indian Oil Corp and Hindustan Petroleum Corp accounts for around 90% of India’s retail fuel outlets.
Concerns raised by RBI
The RBI has raised the concern that, the rising diesel and petrol prices might increase the inflation. This increase in inflation will make hard for RBI to continue its accommodative monetary policy.
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