Bengaluru: Right when the economy and business state recovered from a covid-induced slowdown, the price of soaring motor fuel has appeared as a spoke on the wheel, because it has sent the cost of input and transportation costs skyrocketing.
After a pause that is too short, the retail price of gasoline, diesel and LPG (petroleum gas) continues to increase since the last week of September, as a result it boosts the price of expensive raw materials.
One liter of gasoline, which was sold for Rs 104.70 on September 23, sold at Rs 106.83 in Bengaluru on Friday, while diesel prices rose from Rs 94.04 to RS 97.40.
5kg cylinders from commercial LPG have become more expensive by RS 9 – prices are now Rs 499.69.
“Almost all sectors steamed the pre-pandemic level in terms of production and sales after restrictions on Covid-19 relaxed, but now, the price of uncontrolled fuel proved to be a big deterrent,” said Prakash C, President of the Peenya Industry Association.
“Industry and business cannot provide their product prices because of the surge in input costs and they lose business opportunities.” He said almost 10,000 industrial units in the Peenya industrial area had continued operations and had reached around 75% of productivity, but uncontrolled input costs had made them anxious.
For example, said Prakash, the price of mild steel (MS) has soared from Rs 30,000 per ton to RS 61,000 for one year, and the price continues to increase due to the increase in the price of constant fuel.
One kilogram of plastic raw materials, while sold at Rs 122 six months ago, now costs RS 210.
The paper level has soared from Rs 22 Kg to RS 39.
Spiking prices mainly due to the increase in transportation costs, which is estimated to have increased from Rs 18 per km to Rs 38 last year.
The Perikal M Sundar, President, Karnataka Federation of Chamber of Commerce and Industry (FKCCI), said about 80% of the 8.7 UMKM units of Lakh throughout Karnataka had continued operations, but many buyers canceled contracts due to price changes due to price changes.
“The buyer refuses to get a product because the price revised is much higher than what is agreed upon a year ago.
Manufacturers are also unable to sell at long prices,” said Sundar.
“Unless the government takes steps and reduces fuel prices, economic recovery will take a heavy blow.” He said the center and state government must unite and reduce taxes on fuel.
Hotels and restaurants are among other sectors that are devastated by price increases.
Arun Adiga, the owner of the popular Bengaluru Eaty Vidyarthi Bhavan, said that people patterns currently absorb prices with profit margins, but they will eventually continue the burden of consumers.
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