Russia-Ukraine War: ‘Fire’ will happen due to the rapid inflation of Petrol-Diesel, your pocket will also get scorched


new Delhi. Petrol and diesel prices have increased by Rs 1.60 in the last two days amid a rise in crude due to the Russia-Ukraine War. LPG prices have also increased. Officials of retail fuel seller companies say that in the coming time, the prices of petrol, diesel and LPG may see a further increase. Overall, this has raised the risk of further increase in inflation.

Brent crude prices have risen by more than 40 percent since November last year. Prashant Vashisht, Vice President and Co-Head of Corporate Ratings, ICRA Limited, says that the prices of petrol and diesel are yet to increase further. Brent crude has reached the level of $ 119 per barrel. In such a situation, there is a need to increase the price of auto fuel i.e. petrol-diesel by Rs 18-19 per liter to compensate for the loss.

Also Read – In These Cities ₹1000 LPG cylinder became more expensive than, Is there any name of your city in it?

Pressure will increase on Indian families, consumption will decrease
Deepti Deshpande, Chief Economist, Crisil Ltd. said that fuel prices were bound to rise, but this has raised concerns about inflation. Rising fuel prices may put pressure on Indian households. This can reduce the demand for goods and services. Inflation will also put pressure on the RBI’s commitment to keep interest rates low for faster economic growth.

Also read- Good News for Farmers! government increased the price of jute, in MSP 250 increase of Rs.

…then inflation will increase rapidly
Devendra Kumar Pant, Chief Economist, India Ratings and Research, says that a 10 per cent increase in fuel prices for the full year will result in consumer price index (CPI)-based inflation i.e. retail inflation by 42 basis points and wholesale inflation. Inflation) increases by 100 basis points. The current rise in crude will not only increase inflationary pressure on the economy but will also have an impact on private consumption.

Also read- Good News for Farmers! government increased the price of jute, in MSP 250 increase of Rs.

profound impact on the economy and balance of payments
Pant said that it will all depend on how the crude oil prices fluctuate. If prices remain stable at this level then there will be a deep impact on the economy. However, the impact will also depend on how high petrol and diesel prices consumers have to pay. Apart from this, due to import dependence, there will be heavy pressure on the Balance of Payments.

Tags: Indian economy, inflation, LPG Price, Petrol diesel price


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