Cut taxes

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Sir — This refers to the editorial, “Fuel shock” (May 22). Extremely high prices of fuel in India are a cause of concern not just for the common man but also for the economy because chances are high that it may give rise to inflation due to high transportation costs. Today, fuel is but a necessity and not a luxury. The Government has been earning revenue by imposing taxes (excise and VAT) on fuel. When crude oil price in the international market was $142 dollar a barrel, then the cost of petrol was Rs 50.62 per litre in India. Today, when crude price is $80 a barrel, the cost of petrol is Rs 76.57.In fact, in Mumbai and Bhopal, the cost of petrol is nearly Rs 85 per litre. The Government must bring down the prices of fuel. This will put the money in the pockets of consumers and ultimately lead to the growth of the nation.

Daily Pioneer
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