If you think that the extortionate fuel prices is weighing heavy on wallet, brace yourself for a volley of price hikes this October that will burn a hole in your pocket. Due to multiple inflationary pressures such as record fuel hike, higher MSP, and commodity cost, consumers will end up paying more for almost everything. Any hike in oil prices leads to a subsequent increase in freight costs, pushing up the overall production costs.
Adding to the woes, the weakening rupee and rising crude prices will also exert input cost pressures, higher for most FMCG companies, led by higher packaging costs. Experts say crude-linked costs account for about 20 percent of raw materials used in packaging. “This time, petrol and diesel prices have risen quite a bit at the consumer level. We are likely to see a marginal increase in prices of products in the third quarter as the companies may pass on the burden to the end consumers,” said a Mumbai-based analyst. While some companies have already raised prices, others indicated that prices will go up by at least 5 percent.
Electric appliances like laptops, TVs, etc., are also set to turn dearer in the range of 2-5 percent. The net increase will be in the range of Rs 500-1500 for premium models. While Xiaomi, Sony, and Panasonic have hinted at a price hike before the festive season sales to partially pass on the higher import bills, other consumer durable companies such as LG, Haier, and Godrej Appliances have already hiked prices by 3-5 percent. Any hike in oil prices leads to a subsequent rise in freight costs, pushing up the overall production costs. Weak rupee and rising crude prices will also exert input cost. – The New Indian Express