New Delhi: The surge in fuel prices, which is near the highest record, not only has an impact on the amount of inflation but it may force consumers to reduce unclear expenditure, including in health, when eaten into their consumption expenditure, a report by the Bank of the State Wing Indian research said.
“Our analysis of SBI card letters shows that spending on non-discretionary health expenditure has been substantially reduced to accommodate increased fuel expenses.
In fact, such expenses have more than just expenses for other non-discretion goods, such as wholesale services and Utilities in such a way that the demand for these products decreased significantly.
Part of the nondiscretionary expenditure for goods such as fuel has surged to 75% in June 2021 from 62% in March 2021, “he said.
Citing data, agency argues that there is an urgent need to reduce fuel prices through tax rationalization.
While the government, in the middle and in countries, has muddled income through excise and high VAT on gasoline and diesel, economists now begin to suggest reducing levies.
A recent report by the treatment rank has suggested that gasoline in India, which costs more than Rs 100 liters in many parts of the country, are more expensive than BRICS, Indonesia, Thailand, among others.