The Hindu : Tamil Nadu / Chennai News : Motorists throng pumps ahead of price hike

Online edition of India's National Newspaper
Tuesday, Jun 06, 2006

Tamil Nadu

Tamil Nadu - Chennai

Motorists throng pumps ahead of price hike

N. Ravi Kumar and Sandhya Soman

Hike bound to turn spotlight on need for an efficient public transport system One of the reasons for the opposition from many sections to any increase in the prices, particularly diesel, is its cascading effect on the prices of goods and commodities.

N. Ravi Kumar and

Sandhya Soman

CHENNAI: The largest increase in petrol price in over four years, announced on Monday evening, saw customers make a beeline to fuel outlets to save on the Rs.4.34 per litre hike that came into effect from midnight.

The demand was not just for petrol, whose per litre retail price rose from Rs.47.49 to Rs.51.83, as diesel-run vehicles, especially those engaged in cargo transportation, also headed for the outlets. .

Dieselprices rose from Rs.33.72 a litre to Rs.35.95, an increase of Rs.2.23 that the transport sector is expected to oppose.

One of the reasons for the opposition from many sections to any increase in the prices, particularly diesel, is its cascading effect on the prices of goods and commodities, including vegetables. The South India Chamber of Commerce and Industry Secretary said the diesel price hike in particular would result in an inflationary trend.

The hike is bound to turn the spotlight on the need for an efficient public transportation system, promoting pooling of vehicles and exploring avenues to reduce consumption. Sources in Indian Oil Corporation did not discount the possibility of the hike affecting their sales for several months.

R. Kamalakannan, President, Tamil Nadu Van Owners Association, said the hike would annul the benefits they got after road tax rates were slashed. However, it would take time for the vehicles to pass the burden on to the consumers, especially those with whom they have long-term contracts.

Among the four metropolitan cities , the increase in petrol prices was the highest in Chennai and Mumbai, while it was Rs.4.17 a litre in Kolkata and Rs.4.02 in New Delhi. Some solace is the relatively lesser hike on diesel prices. The increase per litre was Rs.2.39 in Mumbai and just over Rs.2 in New Delhi and Kolkata.

While motorists sought to save by topping up the fuel tanks, several petrol pumps were keen on making the most of the hikeby closing early. Manyoutlets had filled up their underground tanks.

Autorickshaw driverK. Shivakumar said the increase would mean asking commuters for more money. "Since there is no standard fare, we have been asking for Rs.5 or Rs.10 more. Some pay, some do not. But this time, we would have to restrict the extra to Rs.10 as none would pay more."

Printer friendly page
Send this article to Friends by E-Mail