Fuel Price Hikes Spark Inflation Fears In Kashmir

(MENAFN- Kashmir Observer) Srinagar- Residents across Kashmir on Saturday voiced concern over the repeated increase in petrol and diesel prices over the past 10 days, saying the hikes would further fuel inflation and put additional pressure on already stretched household budgets.
Petrol and diesel prices were raised again on Saturday by 87 to 91 paise per litre, taking the cumulative increase in fuel rates to nearly Rs 5 per litre since May 15.

Locals said the back-to-back hikes would not only make daily commuting expensive but also lead to a rise in prices of essential commodities and transportation costs.

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“This is the third hike in the last 10 days. Prices are being increased gradually and it is affecting common people badly,” said Owais Ahmad, a resident of Srinagar.

He said people were already struggling financially and the increase in fuel prices would worsen the situation further.

“The government should reduce taxes to provide some relief. Otherwise, how will the common man survive?” he asked.

Many commuters expressed fear that fuel prices may continue to rise if tensions in West Asia persist and global crude oil prices remain high.

“The crisis is continuing and the government may keep increasing fuel prices regularly. It will directly affect our daily commute and household expenses,” said Mehraj Ahmad, a commuter.

Read Also IndianOil Says No Nationwide Fuel Shortage Fuel Prices Jump Again; Petrol, Diesel Up Nearly Rs 5 in 10 Days

Residents said inflation was already high and the latest hike would trigger further increase in the prices of food items and other essentials.

“This will disturb household budgets even more. Low and middle-income families will suffer the most,” said Irfan Nazeer, a local resident.

Some commuters said the repeated hikes had made them consider switching to electric vehicles.

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“Daily travel is becoming expensive. Students, poor families and middle-class people will feel the pinch the most. I think shifting to electric vehicles is a better option now,” said Mohammad Shahnawaz.

According to industry sources, the latest revision increased petrol prices by 87 paise per litre and diesel prices by up to 91 paise across the country.

The hikes come after state-owned oil marketing companies resumed fuel price revisions on May 15 following a prolonged freeze. Petrol and diesel prices were first increased by Rs 3 per litre each on May 15 and again by around 90 paise per litre on May 19.

Industry officials attributed the increase to rising global crude oil prices, tightening refining margins and the weakening rupee, which has increased the cost of imports.

Global crude prices have reportedly surged by more than 50 per cent since late February amid escalating tensions in West Asia, including US-Israel strikes on Iran and disruption of shipments through the Strait of Hormuz, a key global oil transit route.

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