Spike in fuel prices likely to make commodities, services costlier

On Friday, diesel cost Rs 72.1 a litre in Delhi, about 24 per cent higher from a year before; petrol was 15 per cent costlier at Rs 80 a litre

With the rise in global crude oil prices and the resulting hike in home diesel and petrol costs, various products and services such as transport, food, medical equipment and imported goods are likely to become more expensive. 

Petrol and diesel prices affect five per cent and three per cent of the wholesale price index and consumer price index, respectively,” said Madan Sabnavis, chief economist at CARE Ratings. “The indirect impact is roughly 50 per cent of the direct impact on prices of derived products and services. This includes transport services and goods such as petrochemicals, paints, fertiliser and plastic products.”