Saturday, June 25,
The Centre increased the fuel prices on Friday. A hike of Rs 3/litre in diesel and Rs 2/litre in kerosene was seen while making LPG cylinders were made dearer by Rs 50.
The hike in fuel prices is said to build further inflationary pressures on the industry. According to manufacturers based in Eastern India, “Diesel price hike might have an impact on the industry in the coming days. This will bring more inflationary pressure. Logistic and transport costs might be increased because of the fuel price hike and this will put the steel makers in a more disadvantageous position who were already passing through a bad time”
However the impact on the hike in fuel prices is not said to be immediate on transporters & manufacturers as currently the road traffic is very less due to monsoons and the hike cannot be passed on entirely to the end consumers.
According to manufacturers based in Hyderabad, “A hike of Rs 3/Liter could increase the transportation cost by around Rs 100-150. But this hike will have to be absorbed by the transporters and manufacturers as movement of goods is very less and sales volumes are also low. So, the hike might have some sentimental impact on the market, but no immediate impact is expected in terms of prices”
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