Petrol and diesel prices were hiked again across the country on Friday, the second consecutive spike following a two-day break.
Petrol prices in the national capital climbed by 0.35 paise to 105.14 per litre, while diesel prices jumped by the same amount to 93.87 per litre.
Petrol Prices in different countries:-
Petrol prices in Mumbai, India’s financial capital, were boosted by 0.34 cents to 111.09 cents per litre, and diesel prices by 0.37 cents to 101.78 cents per litre.
Petrol and diesel are priced at 105.76 and 96.98 in Kolkata, West Bengal, and 102.40 and 98.26 in Chennai, respectively. In Bengaluru, petrol costs 108.80 per litre and diesel cost 99.63, while in Hyderabad, one litre of petrol costs 109.37 and one litres of diesel costs 102.42.
This is the 14th increase in petrol prices in two weeks and the 17th increase in diesel prices in three weeks.
Last week, oil firms began boosting motor fuel prices. The price freeze on October 12 and 13 followed a seven-day continuous climb.
While the majority of the country’s petrol prices are already above Rs 100 per litre, diesel prices have surpassed that figure in a dozen states, including Madhya Pradesh, Rajasthan, Odisha, Andhra Pradesh, Telangana, Gujarat, Maharashtra, Chattisgarh, Bihar, Kerala, Karnataka, and Leh.
Prices vary per state, based on the presence of municipal taxes.
State-owned fuel retailers have begun passing on the higher incidence of cost to consumers starting October 6, abandoning the mild price change strategy.
This is because Brent crude, the international standard, has risen to near USD 84 per barrel for the first time in seven years.
Impact on people:-
Rising fuel prices have an influence on people’s lives since high fuel prices contribute to rising inflation. It has an impact on the prices of other important commodities. Fuel price increases have lowered the value of basic items such as food and medicine.
Higher gasoline and diesel costs will almost certainly increase household spending, either directly or indirectly. According to an SBI research paper, the impact of fuel inflation is especially obvious in the urban economy. “This can be ascribed to reduced usage of gasoline and diesel in rural areas,” according to the research.
The rise in the price of gasoline and diesel has a direct impact on the average person, making his life more difficult. The price of food and other vital items has risen rapidly as a result of the rise in the price of gasoline and diesel. The poor sections of society suffer a great deal.
Impact on the economy:-
An increase in oil prices of 15-25 per cent in a year will have a variety of effects on the Indian economy. As a rule of thumb, a $10 increase in oil prices results in an increase in fuel subsidies of around Rs17,000 crore (or $2.5 billion at a 67/$ exchange rate) or 0.09 per cent of GDP.
Effect on fuel levy:-
A rise in the fuel levy may result in lower household income, employment, and returns on production components. Firms are influenced by fuel prices on the production side since their input costs are dependent on transportation and some petroleum products.
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