Fourth Hike In Prices of Fuels, Will It Hurt Consumer Sentiments?

New Delhi, March 26: On one hand experts are predicting a surge in sales of cars and two-wheelers in the year of 2022, on the other, hike in prices of fuel may once again dampen the spirits of the Indian auto market. In a span of one week, fuel prices, petrol and diesel, have increased for the fourth time across the country.

The price of petrol in Delhi stands at Rs 98.65/litre whereas diesel is available for Rs 89.07. In Mumbai, prices of petrol have crossed way over 100 mark and are currently being sold at Rs 112.51, while diesel costs Rs 96.70. Hans India spoke with owners of four-wheelers and two-wheelers on the impact of rising fuel prices yet again.

28 year of Vasudha Sharma says that with Covid-19 cases going to an all-time low in over 12 months, the restrictions have been uplifted which would mean resuming classes at schools and offices for work. Vasudha says that in lieu of continued presence of the deadly virus, more parents would opt to drop their kids to school in personal vehicles than take a shared public transport.

"After two years, my daughter has started going to school. The hike in prices of petrol is simply adding more challenges. I cannot risk sending my daughter to school in a bus or shared mini-bus. Also, the frequency of mini-bus services in some areas has gone down to zero," Vasudha expressed her plight.

Similarly, 25-year-old Gautam Sinha, who works at Jhilmil industrial area in New Delhi, said he recently purchased a second-hand two-wheeler to commute from Palam to his work destination, which is approximately 39 kilometers. Sinha is reconsidering his move of owning a vehicle and says that he might sell it off if the fuel prices continue to peak in the month of April as well.

"In Delhi's harsh summers, I thought it would be better to commute easily to Jhilmil from my own bike. Last year petrol prices peaked till Rs. 110/litre. But once the prices came down, I purchased a two-wheeler from my colleague. I earn less than Rs. 18,000/month. If I have to spend a big chunk of my salary on petrol prices, then what is the use of having a bike?" Sinha questioned.

The hike in prices of diesel and petrol will not only hurt commuters but other segments such as logistics as well. In 2021, prices of petrol and diesel peaked in the month of November, reaching upto Rs. Rs.110.08/litre and Rs. Rs.86.71 respectively.