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Fuel rates on the rise
Posted on: 27/May/2019 4:43:51 PM
Yet again, there is hike in fuel price. In the recent days, there is notable increase in petrol and diesel rates. About 15 paise per litre increase in rate is observed in the recent days. This has alarmed all the motorists in the city. According to industry experts, it is likely that this price hike may even uptick up to Rs 5/litre. In Chennai, on Saturday, the petrol cost was Rs 74.25 per litre, and diesel cost was Rs 70.37 per litre. One day before, on Friday, the petrol price was Rs 74.10 per litre and disel price was Rs 70.24 per litre.
A Thiruvanmyur resident says he owns a diesel car. It is a big saving to have a price cut of even a few rupees per litre of diesel, especially for people like me who go on long drives in the city. When the fuel rates keep increasing in the same way, I will have no other choice than to shift to two wheelers, considering the hike in rates, he says with a dissatisfied note.
What do the merchants say?
This hike is an expected one. This is likely to reflect on the prices of several other goods. The Vice President of All India Motor Transport Congress, southern region, P.V. Subramani says there is 30% downside on the transport industry.
Hoping for the best
Let us closely watch as to what the Prime Minister has to do in this regard. Fuel prices are expected to get stabilized and see removal of tools. There will be increase in goods rate as we have fuel rate increase, says a tyre business owner. Tyre prices are likely to see hike in price by 3-4 percent and the wheels will also see similar hike, he notes.
How to control?
The regulators are practicing a kind of control mechanism which results in this increase in fuel rates, say experts in foreign exchange. When the government makes best use of the buffer set up in 2018, it will be possible to retain the same fuel rates, say experts.
Several times, the excise was increased in spite of the low range of crude rates. This will help maintain the same range of consumer price index and other kinds of rates. The prices are generally fixed in accordance with international rates.
