HIKE IN PETROL PRICE, WILL WE SUFFER MORE?

HIKE IN FUEL PRICE WILL THE COMMODITIES PRICE TAKE A RISE

Since the pandemic every individual is suffering, the country was under lockdown. No work was done therefore no salary was paid to employees, as well as businesses started getting closed as the small firms didn’t have so much money to reinvest and spend a normal life along with it. While everything kept closed and there was no rotation in the market, the Economic condition is very poor, the government from their side is constantly working hard to go some relief from these hardships.

The last few days were a nightmare for every middle-class person and poor families are dying of hunger and starvation, slowly and steadily everything was positively changing a bit, which eventually sighed relief among every person.

But nothing goes as we think or expect and suddenly there was a hike in price in petrol price 

On 16th June 2020, the petrol price increased INR. 5.47 and diesel increased by INR. 5.8. Last time the fuel price increased with such a huge rate was 2018, it was then because crude oil was $65 per barrel opposing the existing range of $35-$45.

As the prices have already been hiked the public is left helpless, we have nothing other than discussing and suffering the problem. So let us understand what can be the consequences and what made the rise in fuel price.

WHY DID PRICE OF FUEL SUDDENLY HIKED

Well, we can never get a proper answer regarding this, but a near assumption can heal 5-10 % of wounds. As per sources, there was a sudden spike in crude oils price on Monday. The reason came out as there was a drone attack on Saudi oil infrastructure. Which eventually wiped off the 5% of world crude oil. And As a result, there was a hike in the price of fuel in India. The rates in 4 metropolitan cities recorded as follows 

. Delhi- INR.72.42

. Mumbai- INR.75.26

. Chennai- INR.75.20

Kolkata- INR .75.14

As we witnessed an increase in petrol prices. Again a tension arose In-country.

Before we start the discussion let me remind you about 60% of Indians are Middle class and about 20% are living below the poverty line which means the remaining 20% are rich. So basically 80% of India’s population belongs to that part of a society where “BOOND BOOND SE SAGAR BHARTA HAI” is the mentality. After facing the toughest situation in the past 5 months what will be the future? Not a time for the blame game, the time we think every decision keenly and thoroughly. 

Keeping all this aside let us see how this. Hike in fuel price will affect the situation and our lives for further 2-3 months or more than that

The question came up as 

HOW WILL IT AFFECT THE CITIZENS 

It will affect every single citizen in some-way or the other let’s see HOW. 

IMPORT & EXPORT The biggest sector that will be affected is IMPORT & EXPORT, As everything was resumed after so long everyone came out with a motive of earning some profit so that they can secure themselves for the worst future.

Import & export are that sector who runs on fuel, apart from sailing .The packages In such an atmosphere there was hardly any import and export work was going. As inter-state and inter-border work was completely off. By any chance in Unlock 1 .A small amount of work would have started that too have got stuck due to the increase of Fuel. The consignment wouldn’t have stopped but the amount of profits has decreased and that too in huge numbers.

INCREASE IN PRICE OF COMMODITY 

there was already a shortage of every product in the market which gave dealers and shopkeepers to increase in .The price, as people were bound to take the necessary items which were important in daily life. 

. Due to an unstable market, there will be inflation .Which will result in an unreal rate which will be more problematic. 

Transport comes secondary as manufacturers would go for creating fewer products as their machinery will be consuming more fuel. Keeping the current scenario in mind no manufacturer would take risks to produce extra units. 

Apart from the necessary item, there will be a rise in the price of every single product .Because of transport charges will get high which will make market runners start increment of price.

INDUSTRIAL SECTOR

 All most Industries are set-up with big and heavy machines which run from fuel hence this will be another sector, That may face a huge lossAlmost all companies are running in loss. Since there was no work for such a long period, the debts and losses are nowhere covered. In such market conditions hardly any firm can afford such a high price of Fuel

INCREASE IN FARE OF LOCAL TRANSPORT

 Local transport is one of those sectors which suffered the most during this pandemic. As the local transports were available we saw a huge increase in fare. 

All these questions together create a big question “WILL WE SUFFER MORE”

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