New Delhi: Fuel prices are on the boil across the nation. With the latest revision of prices on Wednesday (July 8), petrol is now selling at over Rs 100 per litre in all metro cities, with Delhi being the latest to join the list.
Besides metro cities, petrol is also retailing at above Rs 100 per litre in many small towns and far fledged villages. In a few parts of Rajasthan, even diesel, the juice for almost all carrier vehicles, has topped the Rs 100 mark.
Daily revisions in fuel prices have started to put a dent in the pockets of the common man. The snowball effect associated with the recent price hike will further fuel inflation, making essential goods and services expensive than ever.
Many who are working from home haven’t realised the impact of increased fuel prices on their daily lives. However, it’s hard to ignore inflation driven by increased fuel prices, especially when daily need items such as milk, oil, and pulses, among others, are costing an arm and a leg, shattering the monthly budgets of common households.
Here are five things that have become expensive due to fuel price hike:
1. Impact on essential commodities
In the past few months, prices of edible oils such as mustard, groundnut and soyabean, among others, have almost doubled in many parts of India. For instance, in Delhi, sunflower oil prices have surged by 52% in the past year. Also, there’s a 36% and 37% jump in soya and palm oil prices in one year. Fuel prices are one of the many crucial factors that decided the prices of edible oils.
Meanwhile, other commodities such as pulses and sugar have also become in the recent past. For example, the prices of arthur/tur daal have increased from Rs 96 per Kg in July 2020 to Rs 110 per kg, a 25% hike.
2. Expensive Vegetables, fruits and other perishable items
Petrol and diesel prices directly impact the rates of vegetables, fruits and other perishable items. The rising fuel prices are therefore leading to an increase in the transportation costs of such items from farms to a mandi near you.
In Pune, vegetable prices have gone up by 30% in the past few days, and retailers have the increased fuel prices to blame.
3. Interest rate hike on the cards
An increase in fuel prices leads to an overall increase in inflation rates. If the inflation rates go beyond a certain point, then the Reserve Bank of India comes into action. In such a situation, the RBI can consider increasing interest rates by disrupting the existing status quo. All those who are planning to take a loan will get negatively affected by an increase in interest rates.
4. Delivery services to feel the pinch
The fuel price hike is all set to impact companies in the shipping business, which are expected to pass on the costs to other firms and individuals. E-commerce delivery services or food delivery services costs may increase if the situation doesn’t normalise in the coming times. Also Read: Zomato IPO to open on July 14: Check 5 things you need to know before subscribing
5. Imports to get expensive
The freight charges have gone for a toss in the past few months. Even the shipping prices of imported products has increased due to the rising fuel prices in the past few months. Also Read: Have appointed interim Chief Compliance Officer, will make other key appointments soon: Twitter tells Delhi High Court