Indian households face a double whammy with price hikes in milk and fuel
- Indian dairy major
Amul todayhiked prices of its milk, for the first time in two years.
- The Gujarat-based co-operative hiked prices of milk across the country by ₹2/litre, due to pressure from unions and higher input costs.
- Oil marketing companies have raised fuel prices twice in the last two days.
The Gujarat-based co-operative hiked prices of milk across the country by ₹2/litre, due to pressure from unions and higher input costs.
Other milk producers are expected to take cues from the country’s largest milk seller, and dairy company--and follow suit.
Amul’s last hike in milk prices - which was also ₹2/litre - took place in March 2017. Increase in fodder rates have played a part in this
This comes as the second bad surprise that Indians have to deal with, this week.
Oil marketing companies have raised fuel prices twice--- in the last two days. They are no more under pressure from the government which asked them to keep prices artificially low -- instead of benchmarking them to international crude prices.
Yesterday, the day after polling concluded, the prices of both petrol and diesel were hiked in major cities, by ₹0.10 and ₹0.16, respectively.
Petrol and diesel prices were hiked again today by ₹0.05 and ₹0.10.
This is a rude awakening for Indian consumers, who were enjoying the ‘feel good’ prices for the last two months.
The government instructed state-owned oil marketing companies - which includes Indian Oil, Bharat Petroleum and Hindustan Petroleum - to keep prices stable in April and May so as to keep consumer sentiment upbeat.
Unfortunately for the oil marketers, this request came at the wrong time. In the last few months, global oil prices have been rising owing to curbs in production by Saudi Arabia and lesser exports from sanction-hit Iran and Venezuela.
Now, fuel retailers will be eager to make up for those losses they had to absorb in the last few months, by hiking prices.
Indians will have to deal with higher oil prices as polling ends and global supply remains curtailed