Steady rise in fuel prices may drive up inflation; increase cost of essential commodities: Valley residents

It will make daily commute costlier, he said.People said inflation was already very high and the increase in fuel prices would lead to further escalation of prices of essential commodities.This increase will further disturb already stretched household budgets.

Valley residents on Saturday expressed concern over the multiple hikes in fuel prices over the past 10 days, saying this will fuel inflation, with commensurate increase in prices of other essential commodities.

Petrol and diesel prices were raised by 87 to 91 paise per litre on Saturday, taking the cumulative increase in retail fuel rates to nearly Rs 5 a litre in under 10 days, as state-owned oil firms reeled under soaring crude prices.

''This is the third hike in the past 10 days. They are hiking the prices gradually. Already, the financial condition of people is bad, and the rising fuel prices will make it worse,'' Owais Ahmad, a Srinagar resident, said.

He said while the price hike is a fallout of the West Asia crisis, the government should not put the burden on commoners.

''The government should reduce taxes to ease the burden on people. How will the common man survive otherwise,'' he questioned.

Mehraj Ahmad, a commuter, expressed apprehension that there would be steady increase in the fuel prices as the crisis gets prolonged.

''The government will increase the prices regularly and it will burn our pockets. It will make daily commute costlier,'' he said.

People said inflation was already very high and the increase in fuel prices would lead to further escalation of prices of essential commodities.

''This increase will further disturb already stretched household budgets. It will make things harder,'' Irfan Nazeer, a local, said.

He said low and middle-income families would feel the heat of the price rise.

Many commuters said it was better to switch to electric vehicles.

''The price rise will make daily commute costlier. Poor people, middle-class families and students who have a tight budget will feel the pinch. I think it is better to switch to electric vehicles to reduce the direct impact of the hike,'' Mohammad Shahnawaz, a local, said.

The latest revision pushed petrol prices higher by 87 paise per litre and diesel by up to 91 paise across the country, according to industry sources.

The back-to-back hikes follow a prolonged freeze in retail fuel prices and come amid elevated crude oil prices in the global market, tightening refining margins, and a weaker rupee, which have sharply raised the cost of imports.

With the latest hike, petrol and diesel prices have risen to nearly Rs 5 a litre since the state-owned oil marketing companies on May 15 ended the hiatus in rate revision, stoking concerns of inflation and higher transportation costs across the economy.

Petrol and diesel prices were increased by Rs 3 per litre each on May 15 and 90 paise a litre on May 19.

Global crude prices have surged more than 50 per cent since late February, following US-Israel strikes on Iran and disruption of shipment through the Strait of Hormuz, a critical global oil transit route.