"It is a dilemma," says Nirmala Sitaraman over reduction of petrol and diesel prices

With the increase in petrol and diesel prices in the last month like never before, there is an uproar from all quarters of the people across the country. Meanwhile, the RBI governor Shaktikanta Das also emphasised on the need to slash the petrol and diesel prices saying that it would increase the inflation and impact on the productivity sector. It has to be seen what centre would do on RBI's suggestions.

Meanwhile, the Union Finance Minister Nirmala Sitaraman when asked about whether the taxes on petrol and diesel would be reduced has said that she was perplexed and dilemma to answer the question. "I am in dharam sankat," she said.

However, she said there is need for the states and centre to sit and talk to decide on the reduction of taxes. The finance minister has agreed that the taxes are a vital source of income for both the government's and would be a difficult task to deal with. She also emphasised on the need to reduce the burden on the people.

The petrol prices in Delhi are holding at Rs. 90.93 and diesel price at Rs. 81.32 on Friday without any changes for last two days.

Going by the comparison of hikes on prices for the last half-decade, the base price on fuel has come from 63 percent to 36 while state tax increased to 23 percent from 18 percent and centre tax from 16 percent to 37. The dealer Commission has raised by one percent to 4. With this the prices have gone to Rs. 86.30 till February 1, 2021. However, taxes vary from state to state.