Crude oil import gets costlier with the drop in rupee value. India has been increasing fuel prices in order to ease its fiscal burden. Petrol prices have gone up once again, which is the second hike by the government in four months. After the hike the petrol would cost Rs. 66.84 a litre in Delhi, Rs. 71.62 in Mumbai, Rs. 71.15 in Kolkata, Rs. 70.64 in Chennai and Rs. 74.50 in Bangalore.
Inflation in India rose to 9.78% for August, its highest in 13 months, adding to expectations that the Reserve Bank of India (RBI) will raise interest rates on 16th September, for the 12th time since March 2010. The hike in petrol prices and also hike in interest rates will impact the auto sector. The interest rate on automobile loans is expected move up, resulting in weak demand for the vehicles. The sluggish growth in auto sales will impact rubber goods manufacturing industry also.
Read lot more in Rubber4U – 1st October 2011 issue
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