India Inflation Latest News: Concern about inflation is continuously increasing in the country and in the coming days, the prices of petrol and diesel may further increase the problems of the common people. Amidst the Iran crisis and rising prices of crude oil in the international market, now even big industrialists have started warning about the economic situation.

Veteran businessmen like Uday Kotak have said that India’s economic situation may come under pressure very soon. According to the latest government data, the retail inflation rate has increased to 3.48 percent. This concern has become deeper due to increase in inflation for the sixth consecutive month. If the prices of crude oil continue to rise like this, then in the coming time, everything from petrol and diesel to many everyday items may become more expensive.

Uday Kotak said problems may increase further

Uday Kotak has expressed great concern about the country’s economy. In the Annual Business Summit of CII, he said that India should be prepared in advance for the possible crisis. He believes that the situation may become very difficult in future, hence it is important to prepare well in time.

Uday Kotak said that till now the common people have not felt the full impact of rising energy prices, but its impact can be clearly visible in the coming times. He also said that the situation may become more serious due to the ongoing tension in the Gulf region and the Iran war. According to him, if the situation does not improve soon, there could be a big impact on the prices of many essential commodities including petrol and diesel. The direct burden of which can be seen on the common people.

RBI statement on oil crisis

RBI (Reserve Bank of India) Governor Sanjay Malhotra has indicated that if the ongoing tension in West Asia continues for a long time, it may impact fuel prices in India.

He says that the government will not be able to bear the entire burden of continuously rising crude oil prices for a long time. In such a situation, the possibility of increase in prices of petrol and diesel in the coming days cannot be ruled out.

Inflation figures raise concerns

According to government data, the retail inflation rate in the country has increased to 3.48 percent. An increase has been registered for the sixth consecutive month. Due to which the concern of common people may increase. At the same time, the inflation rate of food items has also increased from 3.87% last month to 4.20%.

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Relief from the strategy of oil companies

Government oil marketing companies like IOCL, BPCL and HPCL play an important role in preventing sudden increase in fuel prices in India. According to experts, these companies adopt a balanced strategy to handle price fluctuations. When crude oil is cheap in the international market, these companies create a kind of financial buffer by earning good profits.

Later, when oil prices increase, an attempt is made to reduce the direct impact on customers by using the same accumulated capital. In this process, companies definitely have to suffer losses for some time.

But, with this strategy common people get relief from inflation. However, if crude oil prices continue to rise for a long time, then companies have to change the prices.

Expert expressed concern

According to a report published in ET, regarding rising oil prices, experts have indicated that there is a limit to the relief that consumers are getting at present. According to Madan Sabnavis, Chief Economist of Bank of Baroda, government oil companies are currently trying to control prices by bearing cost pressure at their level. Due to which common people are not suddenly burdened with inflation.

However, it is not easy to maintain this situation for a long time. He believes that if the price of crude oil in the international market goes above $100 per barrel, it will be difficult for companies to bear losses. In such a situation, the possibility of increase in fuel prices will increase and its direct impact will be on the general public.

What further options are available?

At present, the prices of petrol and diesel remain stable in the country. However, the country is dependent on imports from other countries for 85 percent of its oil needs. If the war drags on and crude oil prices cross $110 per barrel, the government will have to bear the losses of the oil companies in the form of subsidy. As a second option, the government is left with the option of increasing oil prices.

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