Due to the recent increase in the prices of petrol and diesel, the budget of households has started deteriorating. According to a new survey by LocalCircles, many customers say that the prices of transport and services have increased and they are now thinking of cutting down on travelling. The survey found that 5 out of 10 customers said that the prices of transport, products and services have increased after fuel prices increased four times in a row this month. At the same time, 7 out of 10 people said that they will cut down on non-essential trips and outings to reduce the impact of rising fuel costs. In this survey, more than 41,000 responses were received from domestic customers from 308 districts of India. Among the respondents, 62 percent were men and 38 percent were women. About 42 percent people were from Tier-I districts, 31 percent from Tier-II and 27 percent from Tier-III, Tier-IV and Tier-V districts.
Increase in the price of petrol and diesel
These results come after the prices of petrol and diesel were increased by Rs 2.61 per liter and Rs 2.71 per liter respectively on Monday. This is the fourth change in fuel prices made by oil marketing companies in less than two weeks. After this latest increase, the price of regular petrol in Delhi has crossed Rs 100 per liter and has reached Rs 102.12 per liter, while diesel is now being sold at Rs 95.20 per liter. Since May 15, OMCs have increased petrol prices by a total of Rs 7.38 per liter and diesel by Rs 7.52 per liter amid mounting losses due to the huge surge in crude oil prices across the world.
Big impact on daily expenses
The LocalCircles survey revealed that 55 percent people said that the cost of transport has increased due to the recent hike. Another 55 percent said that the prices of some things have increased, while 50 percent said that the prices of services have increased. Increases in fuel prices generally increase logistics and transportation costs, the burden of which is often passed on to consumers through increased prices of food items, household goods and other services. This means that even those households which do not use private vehicles much are being affected. However, the survey also revealed that about 30 percent people said that the increase in prices has not had any significant impact on their household budget so far.
Consumers are changing their spending patterns.
To deal with rising fuel prices, 71 percent of people said they would reduce non-essential trips and outings. The survey also found that 35 per cent of people are planning to combine their trips and improve trip frequency, while 29 per cent said they may turn to less expensive transport options, such as public transport, car pooling or cheaper app-based services.
Another 29 percent said that they would cut down on other household expenses to compensate for fuel expenses. Nearly one-quarter of people said they would look for cheaper or closer sources of goods and services to reduce travel-related expenses, while 18 percent were planning to avoid travel or other non-essential expenses.
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