Hike expected in rates of Petrol and diesel
Reportedly petrol rates in the country have been rising consecutively for the past six days following a steady rise in global crude oil prices. While fuel rates were not hiked on wednesday, the fresh rally in petrol price could worsen India’s inflation outlook. Both petrol and diesel rates in india continue to be near record levels, retailing at Rs 81.73 per litre and Rs 73.56 per litre consecutively in Delhi. Although diesel price in the country has not been increased since July 30, rates in many circles continue to remain significantly higher.Rates are much higher in other cities like mumbai, where petrol is retailing at Rs 88.39 per litre and diesel is available at over Rs 80 per litre. In some small towns and cities, rates have already crossed Rs 90 for a litre of petrol and over Rs 80 per litre for diesel. Further hikes can be expected, especially petrol rates, if global rates continue to rise on reports of more output cuts.
In such a scenario, the price burden could become overwhelming for the country’s population who are already struggling with finances amid the coronavirus pandemic. customers were already overburdened when petrol and diesel prices were increased consecutive for over 20 days starting june 7. In the second round in august, petrol price has gone up by Rs 1.30 per litre while diesel price has not been changed. Higher fuel prices could not only curb demand but also push inflation higher in the month of August. It is worth mentioning that India’s inflation in the month of July was recorded at 6.93 percent, way above the Reserve bank of India’s medium-term target of 4 percent. Experts say the central and state governments are aware of the consequences but have no choice as it is the only source of solid revenue in the wake of dismal tax collections from other sources during the pandemic.
In such a scenario, the price burden could become overwhelming for the country’s population who are already struggling with finances amid the coronavirus pandemic. customers were already overburdened when petrol and diesel prices were increased consecutive for over 20 days starting june 7. In the second round in august, petrol price has gone up by Rs 1.30 per litre while diesel price has not been changed. Higher fuel prices could not only curb demand but also push inflation higher in the month of August. It is worth mentioning that India’s inflation in the month of July was recorded at 6.93 percent, way above the Reserve bank of India’s medium-term target of 4 percent. Experts say the central and state governments are aware of the consequences but have no choice as it is the only source of solid revenue in the wake of dismal tax collections from other sources during the pandemic.