Petrol prices at all time high; high diesel prices hurt garment industry

The sudden hike in prices of diesel and petrol, along with a rise in crude oil prices, was due to the ongoing supply cut of oil by the OPEC

The President of Garment Manufacturers and Wholesale Association of Telangana, Pavan Bansal, on Monday said that the recent rise in diesel prices was affecting the garment industries all over the country. Bansal said, "Diesel rates have increased more than Rs. 10 in the last four years. This will impact the garment industry negatively raising the product of the price of the materials. It will lead to huge losses for the traders."

He added that diesel was an important commodity for the industries as it was more affordable than petrol.

Highlighting the importance of the fuel, Bansal further said, "Diesel is used in several industries on a daily basis, whether it is garment or manufacturing industry. Our materials come from all over India. We send garment materials to neighbouring states like Karnataka, Andhra Pradesh, Maharashtra and Tamil Nadu. We also sell the materials in local areas."

He also criticised the increase of Goods and Services Tax (GST) on raw products as it was becoming an additional burden on the traders.

Meanwhile, Petrol prices have hit Rs 74.40 a litre, while diesel rates touched Rs 65.65, the highest ever since May 2014 in Delhi, according to Indian Oil Corporation (IOC).

In Kolkata, Mumbai and Chennai too, petrol prices climbed to new highs of Rs 77.10, Rs 82.25 and Rs 77.19 respectively. Diesel prices in the three cities touched record highs of Rs. 65.65, Rs. 68.35, Rs. 69.91 and Rs. 69.27 respectively.

The sudden hike in prices of diesel and petrol, along with a rise in crude oil prices, was due to the ongoing supply cut of oil by the Organisation of the Petroleum Exporting Countries (OPEC), coupled with a strong global demand for crude.