Has the fuel price hike hurt your budget?

By Reuters Staff
June 12, 2010

Motorists wait at a petrol pump to fill petrol in Lucknow June 7, 2010. REUTERS/Pawan KumarThe government has freed up state-subsidised petrol prices and also hiked the prices of diesel, cooking gas and kerosene.

Petrol prices would be market driven and have been raised by 3.50 rupees per litre, while kerosene prices were hiked by 3 rupees a litre. Diesel prices saw an addition of 2 rupees per litre and will be freed up in the future. Cooking gas prices were raised by 35 rupees a cylinder.

The opposition parties have called a day-long strike to protest the fuel price hike seen as adding to double-digit inflation.

“As I enjoy my morning coffee and unexpected holiday. Ashamed the political parties strike it out in the Maximum city, Mumbai, ” read a post on twitter as the opposition tries to make a point.

“Hope there’s no intent to impose a bandh on a plane in the air midway between two BJP ruled states,” read another tweet.

Has the fuel price hike hurt your budget? Share your views.

Comments

Mr. Deora, in that case, does not know the bracket of ‘ordinary people’ of this country. It’ll affect a middle class person’s budget enough for an ever so slight nudge – for those who do not fall into that category are a huge number (if I may presume larger than the ones who’ll feel the nudge). I do not think raising prices consistently the way we have seen them go up in the last 2 years will work. The prices already are steep enough to hurt. As for how it has begun affecting – for the past one week every autowala has been asking for an extra 20 Rs becoz there’s a talk of the price rise.

Posted by Anuja | Report as abusive
 

We need to balance things. State cos are in deep losses too, but then, the common man should not be hurt as well. Govt should come up with a solution which benefits both parties and hurts no one.

Posted by AdityaK | Report as abusive
 

Fuel price hike = Rise in transporation cost = Rise in foods/vegetables & daily consumable items = Rise in power generation cost = Rise in = Rise in cooking gas & kerosene = Higher inflation= Higher cost of living

How can govt use this weapon for the benefit of few energy retailers such as IOC, BPCL and HPCL operate profitably. State govts and local authorities should completely remove any form of taxes levied on fuels and treat them as essential commodities.

Posted by royalrinku | Report as abusive
 

Aditya, I think if that solution existed, the government wouldn’t have dilly-dallyed for so long. I think ultimately, the common man will be forced to stretch that rupee a little more.

Posted by jammy10 | Report as abusive
 

The fuel price hike may be needed to keep the oil companies afloat but the timing could be better than the present. With inflation already high, a fuel hike might propel higher prices across the board feeding the inflation further.
The government could always bet on its own predictions of a good monsoon and raise fuel prices. However, this could mean that if agricultural output is affected in anyway we could see prices skyrocket.
The ordinary Indian if defined as the average urban middle class family might need to do some penny pinching if there is a price hike. I wouldn’t hazard a guess for those who are below that economic level though.

Posted by Rambler | Report as abusive
 

I think the government should start thinking more about the economy than protecting their political thrones. They should increase fuel prices. The common man can make do with the Metro.

Posted by ToeKnee | Report as abusive
 

Yes it must be raised! I am a middle class man but still I want to go with Mr.PM
reasons?
1, He is clean hand always think about future of India more than any one in India

2, People can say below poverty line people can be affected by inflation and make worse of their life! how long we should say this? since inflation is determined by many many factor (corruption, brokerage, politics in manner of export and import)

3, He believe the subsidy spend on fuel and fertilizer can be revert back to people as spending on infrastructure (which create Jobs, industrial production, economy which in turn give back money to poverty people).

4, we are tough Indian who sailed through recession by saving and living style. Y can’t we proof again that we can sail thorough subsidy into real meaning economical growth?

Posted by m.thanabal | Report as abusive
 

Since I am planning to buy a car, it sure is going to be a double whammy! Fuel budget and car budget both get affected. Will cut deep into my pockets.

Posted by Urvashi.Sibal | Report as abusive
 

This matter has to be looked at in the right perspective. State owned petroleum enterprises are held substantially by the Govt. of India. The Govt. is representative of the people of the nation. When fuel prices are subsidised by the Govt. forcing the stated owned petroleum enterprises into the red it is akin to a bill that every Indian has to foot indirectly. However, in many ways the benefits flow largely to middle class and the elite.

This is unfair. Fuel prices have to be freed. Market forces should be unleashed and the invisible hand must be allowed restore a market distortion to its natural state.

Posted by Boloo | Report as abusive
 

Since I don’t own a car – don’t think it’ll burn a hole in my pocket. But I hope the auto meter prices be revised soon too, or it’ll be a pain to haggle all over again for crazy prices asked by the auto-wallahs – and when one has to tell the, bhaiya Agra nahi jana! I’d prefer walking and metro as the best options available!

Posted by Anuja | Report as abusive
 

Well, this is bad news for the true “common man”, but not for the middle class.

I feel bad for people who use kerosene. They will no doubt be hurt by this. Basically, we need to define again — who is the common man?

A common man cannot be an employed person earning 5 lakh rupees per annum in a nation where majority of population lives in under $2 a day.

1) The state cos need this. They cant afford to sell fuel at such cheap rates. High time Indians realise that fuel is an expensive commodity. We should learn to do budgeting accordingly.

2) Are we forgetting that govt has given us significant tax exemptions this year as compared to last year? Those earning around 5 lakh save around 20,000 this year whereas those earning more than 8 lakh save more than 50,000 rupees this year. Is it that big an issue if we need to pay some little more for fuel?

3) Even if you are driving say 1000 km a month, and you car gives an average of 10km/litre, its an extra 350 rupees per month. That should not hurt a middle class employee for sure.

Posted by AdityaK | Report as abusive
 

the fact that the timing for the petrol price deregulation could have been better is understood.
but is this bandh helping out the “aam aadmi” as the oppostition choses to call the citizens of india, is not so clear.With people from villages travelling to hospitals stuck on highways because of this so called bandh and people not getting to work to earn their daily wages.the opposition loves to represent its act of trying to capture power as a cause for the aam aadmi.
Is it not clear that none of these people really care about the citizens of India.Do you think any of these leaders would be willing to give up their cars and travel in buses because the “Aam Aadmi does?”.
This is just a political gimmick by the opposition to show that it exists.

Posted by SANIBH | Report as abusive
 

Government not worried of aam admi. If you worry about cost use less. Government is not worried about inflation they will say if monsoon is good food prices will fall. Government is trying fix it fiscal deficit targets to 4% or less so that before the next election they can waive another 60000 crore for farmers or another vote class to maintain votebank

Posted by Raghunath-K | Report as abusive
 

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