New Delhi: Fuel prices are boiling across the country. With the latest price revisions on Wednesday (July 8), petrol is now selling at over Rs 100 per liter in all metro cities, with Delhi being the latest on the list.
Apart from metro cities, petrol is sold at over Rs 100 per liter in many small towns and remote villages. In a few parts of Rajasthan, even diesel, the juice topped the list with a score of Rs 100 for almost all carrier vehicles.
Daily revisions in fuel prices have begun to put a tooth in the pockets of the common man. The snowball effect associated with the recent rise in prices will further stimulate inflation, which will make essential goods and services more expensive than ever.
Many people who work from home do not realize the impact of rising fuel prices on their daily lives. However, it is difficult to ignore inflation driven by rising fuel prices, especially daily necessities such as milk, oil and legumes, which, among other things, cost an arm and a leg, distorting the monthly budgets of common households.
Here are five things that are expensive due to rising fuel prices:
1. Impact of essential commodities
In the last few months, the prices of cooking oils like mustard, groundnut and soybean have almost doubled in many parts of India. In Delhi, for example, sunflower oil prices have risen 52% in the past year. Also, soybean and palm oil prices have risen by 36% and 37% in a year. Fuel prices are one of the most important factors in determining the price of cooking oils.
Meanwhile, other products such as legumes and sugar have also changed in recent times. For example, Arthur / Ter tal prices rose from Rs 96 per kg in July 2020 to Rs 101 per kg, an increase of 25%.
2. Expensive vegetables, fruits and other perishable items
Petrol and diesel prices directly affect the rates of vegetables, fruits and perishable goods. So rising fuel prices are driving up the cost of transporting such goods from farms to a mandi near you.
In Pune, vegetable prices have risen by 30% in the last few days and retailers have increased fuel prices.
3. Rise in interest rates on cards
An increase in fuel prices leads to an overall increase in inflation rates. If the inflation rates go beyond a certain point, the Reserve Bank of India comes into operation. In such a scenario, the Reserve Bank may consider raising interest rates by interfering with the current situation. Everyone who plans to borrow will be negatively affected by the increase in interest rates.
4. Pinch feel delivery services
All of the fuel price hikes are set to affect companies in the shipping business, which are expected to cover costs for other companies and individuals. Costs of e-commerce delivery services or food delivery service may increase if the situation does not return to normal in the near future. Also read: Zomato IPO to open on July 14: Check out 5 things you need to know before subscribing
5. Import to get the price
Freight rates have gone up for the past few months. Shipping prices of imported goods have also risen over the past few months as fuel prices have risen. Also read: Appointed interim chief compliance officer, will make other key appointments soon: Twitter tells Delhi High Court