Petrol and diesel prices have increased by Rs 1.60 in the last two days amid a rise in crude oil. The prices of LPG cylinders (LPG) have also increased. Officials of retail fuel selling companies say that the prices of petrol, diesel and LPG will increase further in the coming time. As a result, there is a danger of further increase in inflation.
Crisil’s chief economist Deepti Deshpande said fuel prices were bound to rise. This has raised concerns about inflation. Rising fuel prices may put pressure on Indian households. There may be a decrease in the demand for goods and services. There will also be pressure on RBI’s commitment to keep interest rates low for faster economic growth.