Petrol prices in several districts in Karnataka breached the sensitive Rs 100 per litre-mark on Monday after touching a record high in several states including Rajasthan, Madhya Pradesh, Maharashtra and Andhra Pradesh. At Sirsi in Uttara Kannada district, fuel prices were perhaps the highest in the state with petrol at Rs 103.51 and diesel at Rs 93.21 per litre.
In Bengaluru, fuel prices rose by 29 paise, but remained below the Rs 100-mark, at Rs 98.49 for petrol and Rs 91.41 per litre of diesel. Balaji Rao, president of Bengaluru Petroleum Dealers’ Association told TNIE that in another 10 days, the price will cross `100 per litre in Bengaluru too.
He explained that there are multiple reasons for the fuel hike including the lockdown, the rise in dollar price and also the dip in the economy, in which fuel sales is a large contributor. Earlier, India purchased some of the fuel from Iran in rupees. Now, with the Iran issue, the cost has escalated and also because India is buying in dollars from other OPEC countries, he said.
“Since there is a lockdown and movement is less, the rising fuel cost has had little impact so far. It will hit hard when the lockdown is lifted and movement to offices becomes regular. The rise in cost of other items along with fuel cost will have a major impact on the monthly home budgets,” said Pradeep K, a factory manager, who is working from home in Bengaluru.
For those in the districts, who are already badly hit by the pandemic and the lockdown, the spiralling fuel price is burning a deep hole in their pockets. Though their physical movement outside is restricted, the petrol and diesel prices will have a cascading effect on the prices of essential commodities.
Bizmen, cabbies worry about fuel prices; want govt to cut excise duty
“The increase of prices of petroleum products will have a direct impact on the livelihood of the common man. Hence, the government should immediately cut excise duty and ensure that fuel prices are brought down,” said Sham Orekundy, an interior decorator in Davanagere. Stock and bullion trader Rohit S Jain suggested that the government bring down excise duty and issue oil bonds for the time being.
In Davanagere, petrol price rose to Rs 100.17 from Rs 99.88 and diesel to 92.82 from Rs 92.54 on Monday. In Chitradurga, petrol price went up from Rs 99.90 to Rs 100.16 and diesel from 92.55 to 92.81. In Ballari, petrol price was at Rs 100.08 per litre.
Thimmanna, who sells fried foods on his two-wheeler in Davanagere, said, “I have no choice but to increase the price of my items, which people might not accept. If I have to survive, the prices have to be increased.” DS Sagar who owns an IOC fuel station in Davangere, said pump owners too are facing the heat. “Our working capital and bank credit will also become less with every passing day as we have to pay more to procure petroleum products. Also, variable costs for transportation, workers’ salaries have increased,” he pointed out.
In Karwar, petrol price touched Rs 100.17 and diesel was being sold at Rs 92.91 per litre. Though there are not many vehicles on the roads, locals say the price hike is too much. “We have to think twice before taking our vehicles out. But we need to make a living and this is a very critical time,” said Sandeep Sagar, a resident of Karwar.
“We just don’t not know how to react,” said Gopal Krishna Hegde from Yellapur in Uttara Kannada district. Vendors fear that prices of perishable commodities will increase further. “Already, we are paying a higher price for vegetables and meat. It will further increase due to hike in diesel prices,” said Datta Ram, a retailer in Karwar. Abhishek Rao, a hotelier, said, “This is nothing but “munafa khori” (profiteering). They just want to make money. The pandemic has led to a hike of about 40 per cent in our food prices. The fuel price hike will add to another 5-10 per cent increase.”
On Monday, fuel prices in Hubballi-Dharwad went up by about 29 paise. While petrol is being sold at Rs 98.35, diesel now costs Rs 91.30 per litre. Already, prices of vegetable, fruits and other food items are on the rise due to restricted selling hours and short supply. Transportation costs could further push up their prices, many feel. Shivamogga too saw the highest ever prices of fuel with petrol at Rs 99.88 and diesel Rs 92.6 per litre.Ashwini, a housewife, said it has become very difficult for common people to make both ends meet amidst the lockdown when people in many families have lost jobs.
Slamming both the Central and State Governments, T Manjunath, a resident, said that it has become unmanageable to take cars out. In Hassan, petrol price was at Rs 98.31 and diesel at 91.12 per litre on Monday. Autorickshaw and cab drivers said they are facing tough times as fuel prices are increasing, but fares have remained unchanged. Hitting out at the government, Belagavi industrialist S N Shet said the fuel price hike and rising rate of inflation will have an adverse impact on various other sectors besides trade in essential commodities. The surge was witnessed in Belagavi too where the price of petrol rose to Rs 98.36 and diesel to Rs 91.32 per litre.
Businessman Somashekhar Khadbadi said the problems for the common man will only worsen further due to the rising inflation once the situation returns to normal. It will become even more difficult for small businesses which are on the verge of closure, he noted. A Revenue Department employee in Kalaburagi, Vishwanath, said people are forced to fork out more for petrol despite the price rise as they cannot depend on city buses or autorickshaw all the time. On Monday, petrol was being sold in the city at Rs 98.30 and diesel at Rs. 91.20 per litre.
In Kolar, farmers said fuel price rise will have a direct impact on them. Farmers are already suffering huge losses due to the lockdown as there is no demand for their produce, said Sreenath, who owns CMR Mandi, a wholesale business. In Kolar, diesel was priced at Rs 91.37 and petrol at 98.39 per litre on Monday. In Mysuru, petrol price rose to Rs 98.05 and diesel to Rs 91.01 per litre. “Apart from fuel, soaring vegetable prices and fruits during the lockdown have fuelled anger. Though the prices of farm produce have remained low for farmers, middlemen are making a killing while while consumers are feeling the pinch,” said farmers’ leader Kuruburu Shantakumar.