Will hike in petrol prices hurt your budget?

By Reuters Staff
May 14, 2011

IOC, BPCL and HPCL raised petrol prices by 5 rupees a litre from Sunday, a move that is bound to hit the common man’s pocket.

Though this will prove to be a relief for state-run oil firms, it can have an impact on inflation as well.

Brokerage Nomura said in a report late last month that even a 10 percent hike in petrol and diesel prices would add around 70 basis points directly to headline inflation. Finance Minister Pranab Mukherjee has said inflation is likely to remain at elevated levels between 7-7.5 percent during FY12.

How is this hike seen affecting your daily budget and is it likely to change your spending habits?

Comments

With such a sharp price rise, the prices of other commodity are definitely going to increase which in turn will further worsen the situation of high inflation and there will be a steep fall when the markets opens on Monday. This price rise is surely going to effect your pocket and it will hit hard to your monthly budget.

Posted by raiavi24 | Report as abusive
 

There is common sense in making prices of Petrol market related however why cannot state and central duties be lowered? This would help to contain the price escalation to the consumer. Additionally when the prices of Diesel and Kerosene not raised? They should also be decentralized and to lower down impact to consumer, state and central duties be cut.

Posted by SR1 | Report as abusive
 

Yes it will impact common man from all dimension, can you imagine a Rs 5 / Ltr hike ? This corrupt people would rob this country to bankruptcy.

Posted by NilanjanC | Report as abusive
 

Although I am against of giving any kind of subsidy to the petrol, but state & central government should remove all the taxes from the fuel. At present taxes contribute 45% to the petrol price.

Posted by Sksingh | Report as abusive
 

The people who draft the law don’t pay for their petrol or other expenses out of their own pocket. So for them inflation is just a statistic

Posted by Windturner | Report as abusive
 

Yes, by 1 %. The question here has to be will I reduce usage of petrol? or will I look for alternative mode of transport? or will I do car pooling? The answer is NO. So the real answer is, not to the extent that it effects my life.

Posted by Pavankm | Report as abusive
 

We already know energy needs to be conserved to protect our environment from drastic changes, to save the depleting resources for our future generations. So, hike in price definitely hamper our pocket but its ultimately leads to protect of environment because we are not going to waste the fuel as we do in case of water.

Posted by rsrs | Report as abusive
 

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