With the shortage of currency notes already hitting the common man hard, the steep increase in fuel prices on Friday came as an additional blow to the city that is just recovering from the devastating impact of Cyclone Vardah.
The price of petrol has gone up from Rs. 65.58 to Rs. 68.41 a litre and diesel from Rs. 56.10 to Rs. 58.28 a litre in the city.
Kodambakkam resident R. Sridharan said he had already started cutting down on the use of his car that he refuels once a week.
“The fuel lasts for just four or five days and now I have started commuting by two-wheeler to nearby places. With fuel prices increasing, it seems I should just walk to every place,” Mr. Sridharan said.
S. Jayaprakash, who runs a chain of consumer goods stores, said, post-demonetisation, customers were afraid to part with Rs. 100 notes. “Sale was already low and the cash crunch worsened it further. The increase in fuel prices would only add to the burden on the consumers. It could lead to inflation and a further reduction in purchase power,” he said.
Truckers, who were badly affected by the demonetisation and the recent cyclone, said this will only add to their bag of woes. R. Anandan of OMR Sand Lorry Owners Association said with the construction industry in the doldrums, they were not getting orders. “We cannot increase rates now since already our vehicles are not running. The trucks are just standing waiting for one or two loads a week as there is no cash in the market. Banks don’t give cash and fuel outlets do not accept cards due to connectivity issues,” he said.
Diesel shortage
Meanwhile, many fuel outlets in the city have been facing a shortage in diesel supplies. Oil industry sources said a sudden increase in diesel purchase by hotels, IT companies and SEZs have led to non-availability.
There are also connectivity issues as far as Indian Oil Corporation (IOC) is concerned, said a dealer. “They have not been able to make challans at their Ennore facility and have been printing them in the city and taking them physically to Ennore,” he said.
Sources in IOC confirmed that they have been facing connectivity issues, and said their refinery would work on Sunday to reduce the backlog in supplies. “The situation has been improving and we hope things will settle in a couple of days,” the source said.
