The prices of petrol and diesel have increased by Rs 3.
The prices of petrol and diesel in India have increased by ₹ 3 per liter. At first glance, people will see its effect while filling oil in their vehicles at the petrol pump, but its real impact can be on the kitchens of common people. Because due to increase in oil prices, almost everything used in the kitchen, from onion-tomato to pulses-rice, can become expensive.
Actually, India’s economy largely depends on petrol and diesel. From trucks carrying vegetables to groceries delivered online to homes, almost everything depends on transport. Now if the cost of transport increases due to expensive oil, then it is obvious that the prices of those things which are delivered to your home through transport may also increase.
Why is everything affected?
In fact, diesel is considered the backbone of India’s transportation system. Most trucks carrying vegetables, fruits, milk, medicines, packaged food and everyday items run on diesel. Apart from this, buses, tractors, generators and commercial vehicles are also heavily dependent on diesel.
At the same time, most of the people doing online delivery use bikes or small pick-up vehicles running on petrol. In such a situation, the increased prices of both petrol and diesel increase the cost of transport. This increases the cost of transporting goods from one city to another. Later, companies and traders pass on some part of this additional expense to the customers.
This is the reason why the increase in the prices of petrol and diesel is seen as linked to inflation. Although the increase of ₹ 3 will not make vegetables and fruits costlier overnight, the continuously increasing transport cost puts pressure on the supply chain and gradually the prices of goods may increase.
Transport Association also expressed concern
Rajendra Kapoor, president of All India Motor and Goods Transport Association, said that already transport businessmen are working under the pressure of toll tax, expensive spare parts, insurance premium, fitness, permits, taxes and other rising operational expenses. At such a time, the rising price of diesel is becoming a financial burden for the sector.
He said that even a small increase in fuel prices increases the transportation cost of fruits, vegetables, medicines, construction materials, daily consumption items and other essential goods, due to which there is a natural fear of increase in inflation in the market.
Can vegetables and groceries become expensive?
Due to increase in transport costs, prices of vegetables, fruits, milk, curd, cheese, grains, edible oil and packaged food may increase. Perishable goods are more affected because they have to be transported faster and often require cold storage or refrigerated vehicles, which consume additional fuel. For this reason, the impact of increase in prices of petrol and diesel is often first visible on the kitchen budget.
For example, tomatoes, onions and fruits coming between states may be a bit expensive. Milk distribution expenses of dairy companies may increase. At the same time, the logistics expenses of packaged grocery companies may also increase. Even if companies do not increase MRP immediately, local shopkeepers and distributors can increase prices according to transport expenses.
Can delivery fees increase?
Blinkit, Swiggy, Zomato and Zepto may also increase platform fees in the coming time. The delivery system of these companies runs entirely on fuel based network. From the warehouse to the riders who transport goods to customers, fuel is needed at every stage.
If petrol becomes expensive, companies can increase delivery fees, platform or handling charges, surge pricing during peak times and minimum order amount. An additional expense of Rs 10-20 at a time may seem small, but over time users can feel its impact.
What will be the impact on farmers?
Agriculture also depends a lot on diesel. Farmers use diesel in tractors, irrigation pumps and harvesting machines. Cost of farming may increase due to diesel becoming expensive. In future, this may also affect the prices of crops.
Can an increase of ₹ 3 spoil the household budget?
₹3 alone may not seem like much, but fuel prices are not limited to petrol pumps only. Its real effect becomes visible gradually. Because due to petrol and diesel becoming expensive, almost everything from grocery to rent can be affected.
This is the reason why petrol and diesel prices can affect the household budget of common people more than expected. Because even if you don’t drive a car every day, almost everything that reaches your home comes with the help of fuel at some stage or the other.
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