There is no relief for the common man from skyrocketing fuel prices. A litre of petrol is retailing at Rs 79.99 in the national capital while the same is selling for Rs 87.39 in the financial hub of Mumbai. This marks yet another all-time high in petrol and diesel prices.This Fuel price impact leads to the increase of daily use items price.
The prices of FMCG products are likely to increase by about 5-8 per cent starting next month.According reports, some companies have already increased prices in line with various inflationary pressures such as spike in petrol and diesel prices. The hike in minimum support price (MSP) for farmers, and upwards movement in commodity prices will also lead to revision in MRP of some products, it said.
“The environment is inflationary, and it is not possible to hold on to prices going forward. We will have to increase prices by 5% to begin with, to offset multiple pressures… we will try to balance value and volume growth,” Varun Berry, managing director of Britannia Industries told the daily.
Fuel prices spiked to a record high on Friday morning. A litre of petrol is retailing at Rs 79.99 in the national capital while the same is selling for Rs 87.39 in the financial hub of Mumbai. The fall in value of Indian rupee against the US dollar has further worsened the outlook as India imports most of its crude.
Also Read : ‘Mission Modi Again’ To Take Place After 3-Days Ritual
Petrol derivatives, key inputs for FMCG firms, have also been affected by rise in international crude oil prices. They are used in packaging material like bottles and boxes.
“We will take price increases of about 7-8%. The impact of MSP itself has been in the range of 10-12%, but we are not passing the entire cost escalation and taking some hit on the bottomline too,” B Krishna Rao, senior category head at Parle Products, told the newspaper.
A recent report by Jefferies suggests that consumer goods giant Hindustan Unilever has taken price hikes in detergents, skin care and select soap brands in the 5-7% range last month. Parachute hair oil and Saffola edible oil maker Marico undertook a price increase in its value added hair oil portfolio by 7% while oral care maker Colgate Palmolive increased prices in some of its brands by 4% last month.
Post Your Comments