With diesel crossing Rs 100/l, industries, traders worry over ripple effects

Ranchi: Diesel price crossed Rs 100 per litre in the city on Monday after the Centre announced a fourth fuel price hike in less than a fortnight, raising concerns over higher transport expenses, rising prices of essentials and additional burden on small industries.

With the latest increase, petrol price touched Rs 105.21 per litre and diesel reached Rs 100.37 per litre in the city on Monday. Since May 15, petrol has become costlier by Rs 7.38 per litre, while diesel has risen by Rs 7.76 per litre.

Industry representatives said the increase is likely to be felt first in freight movement and supply chains before reaching retail markets.

Federation of Jharkhand Chamber of Commerce and Industries (FJCCI) president Aditya Malhotra said the sharp rise in diesel prices will directly impact micro, small and medium enterprises (MSMEs), many of which are already operating on tight margins.

“Jharkhand depends heavily on imported raw materials for several manufacturing units. With diesel prices rising, transportation and logistics costs will increase immediately. MSMEs are the first to feel the financial pressure because margins are limited,” Malhotra said.

He added that industries dependent on conventional fuel should begin exploring alternatives wherever possible.

“Units that use industrial gases can gradually look at PNG-based systems where infrastructure is available. At the same time, govt should consider support for MSMEs so that production cost does not rise to a point where employment gets affected,” he said.

Traders in wholesale markets in the city said the impact of diesel price hike is expected to be visible in the prices of vegetables and fruits brought from neighbouring districts and states. Vendors at Pandra wholesale market said transportation charges on consignments arriving from Ramgarh, Hazaribag in the state and West Bengal and Odisha have already started rising, and the additional burden may soon be reflected in retail prices.

“Freight rates usually respond to diesel price hikes. If the increase continues, vegetables like potato, onion will become costlier in the local markets within a few days,” said Rakesh Gupta, a wholesaler at Pandra market.

Congress, part of the governing alliance in the state, took out a protest march in Doranda and burnt effigies of the Union govt over the price hike.