Besides the petrol, diesel and LPG prices, compounding the woes for manufacturers and consumers alike is the sharp hike in prices of natural gas starting April 1 for a period of six months
Petrol, diesel and LPG (liquefied petroleum gas) prices are set to burn a bigger hole in your wallet and upset the household budget over the next few weeks, warn analysts. Since March 22, petrol and diesel prices have risen cumulatively by around Rs 6.40-6.50 per litre (i.e., by 6.3 per cent and 7.1 per cent respectively), as of March 31.
“We expect further price hikes of Rs 12 for petrol and diesel price hike (this assumes global petrol/diesel prices of $132-136 a barrel, which corresponds to Brent crude oil price of $112 a barrel). LPG prices have been raised by Rs 50 per cylinder for a 14.2 kg cylinder (i.e., by around 5.5 per cent). Around Rs 280 per cylinder increase is still pending to avoid under-recoveries. This reflects higher commodity prices and escalation of other costs like shipping, insurance and logistics overheads,” wrote Sonal Varma, chief economist for India and Asia ex-Japan at Nomura in a recent co-authored note with Aurodeep Nandi.
Higher cost of fuel, including higher gas prices, will make transportation services expensive – railways, bus, taxi/auto rickshaw, school bus and air fares (the latter reflects prices of aviation turbine fuel. Cumulatively, transport services account for 2.45 per cent of the CPI (consumer price index) basket…
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