Domino effect of fuel price rise puts dampener on festive spirit

Families struggle with household budgets as petrol and diesel have seen hike of 11.8% and 9.6% respectively this fiscal

The rise in fuel prices has adversely impacted most essential commodities, whose rates are increasing in the city. This, coupled with an almost unprecedented increase in the prices of LPG cylinders and edible oils, has further squeezed household budgets and the festival season seems to have only made it worse. This fiscal alone, petrol (₹104.7 per litre) and diesel (₹94.04 per litre) have seen a hike of 11.8% and 9.6% respectively, which has had a cascading effect. “Transport charges have obviously shot up by over ₹50 per quintal, for wholesale traders. Hence, the transport costs for farmers and retailers have also shot up and it is transferred to customers,” said Ramesh Chandra Lahoti, chairman, APMC Committee, Federation of Karnataka Chambers of Commerce and Industry (FKCCI) The fuel price hike alone had contributed to a nearly ₹2 per kilo price hike of almost all commodities, industry sources said. Most of the pulses and cereals have seen a rise in this range.