In 6 months, petrol-diesel prices have gone up by almost 19 per cent, but consumption has gone up instead of down

Highlights:

  • Petroleum dealers say people are upset and angry over rising fuel prices.
  • However due to the festive season the current consumption is steadily increasing. On the other hand, the price of cooking gas has also gone up.
  • Those involved in the transport business say that we are suffering the most from the rising prices every day.

Ahmedabad: Even if your income has not increased in the last six months, your expenses have definitely increased! Petrol and diesel prices have risen by 19% in the last six months. On April 15, the price of petrol in Ahmedabad was Rs 87.57 per liter, which has gone up to Rs 104.24 per liter. So the price of diesel which was Rs 86.96 has gone up to Rs 103.81 per liter.

The rise in crude oil prices has led to a rise in fuel prices. However, due to the festive season, there is hardly any difference in the sales of petrol and diesel and due to the festive season, the consumption has increased and vice versa, said a petroleum product dealer in Ahmedabad. However, consumers are annoyed by the constant rise in prices. While dealers have no role to play in controlling prices, consumers are throwing their frustrations at us. ”

Not only petrol and diesel but also gas prices are going up sharply. Adani Total Gas Limited (ATGL) has also increased the price of piped natural gas (PNG) for residential customers. The company on October 11 increased the price of domestic PNG in Ahmedabad from Rs 1061.20 to Rs 1.60 MMBtu for bi-monthly consumption. Increased to 1,089.20 per MMBtu (metric million British thermal units).

So on consumption above 1.60 MMBtu, the price is increased from Rs. 1,273.44 to Rs. 1,307.04 per MMBtu. So for Vadodara, the company has raised the price of domestic PNG to Rs. 981.12 per MMBtu to Rs. 1,009.12 per MMBtu. These non-tax rates have been in effect since October 24. The rise in fuel prices has also led to an increase in the cost of transport, private cabs and buses. Chandresh Patel, president of the Gujarat Luxury Cab Owners Association (GLCOA), said, “With the increase in petrol and diesel prices, we have improved our tariff by about 20% per kilometer.” Patel added: “However, our margins have been steadily declining as the last six months have seen a steady rise in petrol prices. This is having a direct impact on our income. ”

Similarly transporters are also facing rising fuel costs. Mukesh Dave, president of the All Gujarat Truck Transporters Association, said, “The daily improvement in fuel prices is no longer practical as we have to work at pre-negotiated rates for transporting goods and suffer more and more losses.” ” Dave added: “As fuel prices rise frequently, we have added a clause to our transport agreement. If the price exceeds a certain threshold during the validity of the contract, we increase the applicable transport charge accordingly, ”he said.

However, he said, transporters are forced to bear the rest of the price hike. “Fuel accounts for 50% of our input cost component, resulting in a reduction in our profit margins or sometimes even losses,” he said. “A series of proposals have been made to bring petrol and diesel under the Goods and Services Tax (GST).” Top traders in the transport industry are also experiencing increasing economic burdens due to price increases as transportation costs increase and their input costs increase with natural gas and coal costs.

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