With fuel prices at a new high, transporters, wholesalers and consumers are seriously worried about the impact it will have on their finances.
On Wednesday, a litre of petrol was priced at ₹80.11 and diesel ₹72.41 a litre.
It was in September 14, 2013 that a litre of petrol cost ₹79.55 in Chennai, which was then an all-time high.
Steady rise
On Tuesday, petrol was priced at ₹79.79 a litre. Diesel prices too have been climbing steadily since January this year and stand at an all-time high currently.
All India Motor Congress vice-president (south zone) P.V. Subramani said that the movement of goods had been badly affected because of the increase in diesel prices. “An all India strike has been announced only in July but already it looks like we are on strike. Large fleet owners are just about managing. But those who own one vehicle and are dependant on that for their livelihood are badly affected,” he said.
Manish Parmar of the Madras Kirana Merchants Association said that everyone across the board had been badly hit by the increase in fuel prices. “It’s like a domino effect. Transportation costs have gone up by around 15% in the last few months. By the time the goods reach the consumer, the cost just balooons,” he said.
A. M. Vikramaraja of the Tamil Nadu Vanigar Sangamgalin Peramaippu said that scuffles had broken out between transporters and traders as transporters demanded increased rates.
“The government does not realise that the common man is being burdened by this increase. We demand that the governments cut taxes,” he said.
Working capital hit
Meanwhile, petroleum dealers said that they were also unable to bear the burden of the increase in fuel prices.
K. Suresh Kumar, vice president of Tamil Nadu Petroleum Dealers Association, said that their working capital and investments had gone up but margins remained the same.
“In 2013-14, when crude prices went down, the government had increased the excise, saying it was meant to cushion consumers when crude prices go up. That is not happening now,” he pointed out.
