Cutting oil taxes will boost consumption demand, support eco revival: Report

Warning that a 10 per cent spike in oil prices can push up retail inflation by 23 basis points, badly hurting consumption at a time when the economy is just about recovering, a brokerage report has called for slashing oil taxes to nurture fledgeling consumption growth.

Petrol, which has a tax incidence of 60 per cent of the MRP, has crossed Rs 100 a litre in many parts of the country, while diesel, which has taxes to the tune of 54 per cent of the retail price, has crossed Rs 90.