In the recent trend there has been an increase in diesel and Petrol prices across the country. There were days when we could get petrol at ₹60 per litre and diesel for ₹40. According to the recent update petrol is priced at ₹101.76 in Mumbai and Diesel is ₹99.50 in Rajasthan.
Let’s look into things which might become expensive due to hike in the prices of diesel and petrol.
1) Monthly Fuel Invoices
People owning personal vehicles will find a huge change in the monthly fuel bills. As they travel from one place to another due to work or any other reason . They will have to spend a lot on petrol or diesel everyday which will impact their monthly expenses..
2) Daily essentials commodities
From January 2021 till June 2021 the diesel prices have hiked more than 10%. This will impact the transportation cost which will lead to an increase in essential commodities. According to the TOI report oil prices have also increased. Mustard, groundnut and soya bean oil prices have increased from ₹90 to ₹180 per litre. You can also expect a 10-20% increase in the prices of flour and pulses.
3) Courier services
Transport and logistics companies are likely going to increase their prices with the increase in the fuel rates.
4) Perishable goods
Perishable goods like Vegetables and fruits price will increase due to increase in the transportation costs. As they will have to bring these from the farms to the market.
Transportation costs play a very important role when it comes to perishable goods. It is almost 60% of the actual cost of goods.
5) Operating cost of MSME
With the hike in fuel prices, MSME which are slowly recovering from the pandemic are going to be burdened with the overall increase in operational cost.
According to Perikal M. Sundar, the president of FKCCI “The overall Operational cost has increased with the hike of fuel which will lead to an upward shift of overhead charges upto 30%. The employees in these MSME travel on their own or by public transport to factories and units. Now MSME will have to increase the salaries of the employees although the businesses have not become normal”
6) Interest rates
There will be a rise in the interest rates due to higher inflation. RBI is likely going to increase the interest rates. For the ones who save money there are chances they will be getting higher interest and for the people who borrow funds they will have to pay huge interest rates.
7) Foreign trade, education and travel
Import is being pressured with an increase in the prices of crude oil. This is going to have an adverse effect in the Indian Currency. An individual’s expenses are going to increase with the change in depreciating exchange rates if someone is planning to go for a vacation, start a business or study abroad.
8) Public transport
With an increase in fuel prices the operational cost will increase which will lead to higher fares in public transport like busses, auto rickshaws and cabs.
Many cab drivers are planning to quit their jobs and sell their cars due to this situation as their salaries are going to be lower than before.
Incase the fuel prices continue to rise like this, it will hit the nation in different ways and worsen the things around. Due to hike in the fuel prices revenues of some industries may go low.