New Delhi: A hike in fuel prices, which is nearing record highs, is not only impacting inflation numbers but may also force consumers to cut back on non-discretionary spending on health, as it affects their consumption. Eats in expense, report a report state Bank of IndiaThe Research Wing of
“Our analysis of SBI card spend indicates that spending on non-discretionary health expenditure has come down significantly to accommodate the increased expenditure on fuel. In fact, such spending has increased spending on other non-discretionary goods, such as grocery and utility services, to such an extent that there has been a substantial decline in demand for such products. The share of non-discretionary spending on items like fuel increased to 75% in June 2021 from 62% in March 2021. Citing the data, the agency argued that there was an urgent need to reduce fuel prices through tax rationalization.
“Our analysis of SBI card spend indicates that spending on non-discretionary health expenditure has come down significantly to accommodate the increased expenditure on fuel. In fact, such spending has increased spending on other non-discretionary goods, such as grocery and utility services, to such an extent that there has been a substantial decline in demand for such products. The share of non-discretionary spending on items like fuel increased to 75% in June 2021 from 62% in March 2021. Citing the data, the agency argued that there was an urgent need to reduce fuel prices through tax rationalization.
While governments Center and states, raising revenue through higher excise duties and tub Economists have now started suggesting reduction in levies on petrol and diesel.
a recent report care rating had suggested that petrol in India, which costs more than Rs 100 per liter in many parts of the country, was more expensive than BRICmilf indonesia, Thailand and America, among others.
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