Petrol, diesel price hike seen stoking inflationary pressure
NEW DELHI: The upward revision in prices of petrol and diesel after a gap of over four-and a-half months is likely to put fresh pressure on prices and strain household budgets against the backdrop of the swirling uncertainty due to Russia’s invasion of Ukraine.
The impact of the increase across the supply chain has the potential to hurt growth at a time when the economy was scripting a robust recovery after the bruising impact of the three Covid waves.
“Overall, we see incremental price pressures to the tune of 80-100 basis points (100bps = 1 percentage point) pushing average inflation in the range of 6. 1-6. 3% in FY21 compared to our estimate of 5. 3%,” said Yuvika Singhal, economist at research firm QuantEco.
