Supporting government’s inevitable move of raising the fuel prices amid hefty fiscal deficit, Prime Minister's Economic Advisory Council Chairman (PMEAC) C Rangarajan has pointed out that hike in diesel price will compel the Reserve Bank to ease monetary policy to give thrust on growth, as inflation is likely to go up at least 0.4 percent in the near future.
The government has raised the diesel prices by about Rs 5 a liter and also limited the number of subsidized cooking gas cylinder to six per household a year. This move will garner an additional Rs 20,300 crore to the oil companies, who had claimed a loss of over Rs 560 crore per day on the sale of regulated diesel and cooking fuels.
CRISIL Chief Economist D K Joshi also supported government’s move, pointing out that the decision was highly necessary to reduce the financial burden of the nation, though will ignite inflation, there will be good impact on the economy of the country. Department of Economic Affairs Secretary (DEA) Arvind Mayaram and Yes Bank’s Chief Economist Shubhada Rao also echoed similar views.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: