Amid soaring crude oil prices in the international market, and the possibility of fuel price hikes in India, 42 per cent of households said that they will be unable to tolerate another hike in the petrol and diesel prices, according to a survey by LocalCircles. The survey had 27,000 participants across 361 districts of India. Out of this, 42 per cent of respondents were from Tier I cities, 34 per cent were from Tier-II cities, whereas 24 per cent were from Tier 3 and Tier 4 cities, as well as rural areas respectively.
Approximately 22 per cent of households said that they can tolerate a short-term increase in fuel prices without them having to cut discretionary spending, whereas 9 per cent of respondents said that only a 20 per cent hike in fuel prices is tolerable. At least 24 per cent of the households said that they have already cut the discretionary spending and will continue to cut further, meanwhile, 4 per cent did not have any opinions.
Amidst the Russian invasion of Ukraine, crude oil prices in the international market have increased to as much as $110 per barrel. Back home, the prices of petrol and diesel will increase by Rs 12 respectively, as assembly elections concluded in five states. The fuel price hike was on a hiatus for the past two months. For the past one year, the prices of petrol have hovered between Rs 100 to Rs 110 per litre, whereas the prices of diesel were between Rs 90 to Rs 100.