First State to Cut Petrol Price

17 August 2021 Current Affairs:Tamil Nadu has grown to be the first nation in India to reduce the petrol price in the fiscal year 2021-22 by means of Rs 3/litre, supplying a major relief to consumers.

Highlights:
♦ The rate reduction was introduced by State Finance Minister Palanivel Thiagarajan in the course of his budget speech on August thirteen and it came into effect on August 14.
♦ It is expected to cause an income loss of ₹1,160 crores for the nation exchequer.
♦ Diesel and petrol costs in India have hit file highs. The government cites the price upward push in international crude oil by using extra than 50 per cent as the purpose for growing expenditures in India.
♦ In India, the retail petrol and diesel costs are decontrolled and are linked to international crude oil prices. Thus, if crude expenditures decrease, retail expenses limit too and vice versa.
♦ But this does not now occur on the floor because oil rate deregulation is a one-way procedure in India.
♦ When international crude oil costs reduce, the authorities start charging clean taxes and levies in order to earn extra revenues.
♦ Thus, the predominant beneficiary of the mechanism of rate decontrol is the government in India.
♦ As per experts, the impact of rising fuel inflation is counterbalanced by using declining meals inflation. However, shoppers with greater expenditure on tour are distinctly affected via greater prices. It also impacts farmers who rely on diesel-powered irrigation systems.
 

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