Firming of crude prices in global markets will impact fuel prices in India: ASSOCHAM
New Delhi [India], Jan. 16 (ANI): Commenting on inflation and its impact on fuel prices, industry chamber ASSOCHAM on Monday said the firming of crude prices in the global markets will impact the fuel prices in India.
D S Rawat, Secretary General, ASSOCHAM said, "Breaking down of the wholesale price index (WPI) data clearly shows a pressure on prices coming from petrol and diesel following firming of crude prices in the global markets with the increase in dollar value further inflating the impact on the fuel prices."
"Steady and continuous rise in prices of crude oil and strengthening of US dollar for the last one month may have negative impact on input prices for the industry, which has already started the pressure on its profitability owing to low demand," he added.
Rawat further turned the attention on the sharp drop in prices of vegetables.
"What needs to be observed carefully is the build up inflation which has reached 4.28 per cent in the financial year so far, making it imperative to be watchful. The fact that the upward pressure on wholesale prices has come about despite a sharp drop in prices of vegetables shows how the WPI may gather pace further once the seasonal price of advantage of the vegetables goes away," Rawat said.
Rawat further explained the change in the WPI number. He added, "The December 2016 WPI number stood at 3.39 percent as compared to 3.15 percent during the previous month. Going by the sectoral composition, the rise in WPI is mainly driven by wheat, pulses, potato, fibres, minerals, high speed diesel, and sugar while some downward movement was seen in the prices of vegetables, and onion."
Earlier, Assocham appealed to the government to ensure that the Union Budget for 2017-18 helps the resurrection of the economy of India. The Budger will be presented on February 1. The Railway Budget would be a part of the main Budget. (ANI)