NEW DELHI: The rise in the prices of fuel and basic necessities amid the Covid-19 pandemic has hit the finances of the population, with a majority of consumers surveyed predicting a drop in their incomes as well as savings over the course of exercise, according to a survey.
Survey participants also want the government to cut taxes on gasoline and diesel by up to 20 percent.
No less than 70,500 responses were received from participants in 382 districts for this survey.
In most parts of the country, consumers are paying more for the same list of essentials and groceries that they spent in the past three months compared to what they previously paid in the past three months. year and in 2020.
The prices of items like edible oil, soap and shampoo have increased by 4-20%, according to a survey conducted by the community social media platform LocalCircles.
The “Mood of the Consumer” survey aimed to understand how many more people paid to buy vegetables compared to December 2020 to February 2021 or before the second wave of the pandemic as well as the evolution of monthly household spending during the last three months.
According to the survey, 65% of households reported paying 25-100% higher prices this year for vegetables compared to December to February.
Vegetable prices have seen an increase as many vegetable mandis across the states were affected by the lockdown and restrictions until May, followed by higher gasoline and diesel prices.
Up to 79% of households said their monthly grocery expenses brought in less amount for the same or more money than they spent from December to February.
In June, consumer price inflation based on India’s consumer price index exceeded the RBI’s comfort level at 6.26 percent.
While inflation based on the wholesale price index stood at over 12%.
While 47% of consumers expect Covid uncertainty to last 6 to 12 months in planning their household budget.
Up to 49% estimated that their average household savings would decrease in 2021-2022 compared to 2019-20, according to the survey.
A similar question that LocalCircles asked consumers in the May 2020 survey, 46% of consumers expected their savings to shrink.
This percentage has increased slightly to 49% of consumers who now expect their savings to decline in fiscal year 2021-2022 given the intensity of the 2nd wave of COVID-19.
On rising fuel prices, 76% of consumers said they wanted the government to reduce excise taxes on gasoline and diesel, with the majority to be cut by up to 20%.
In April-May, when several states observed lockdown-type restrictions, the price of fuel rose 15-fold.
In Delhi the price of gasoline is over Rs 101 while in Mumbai the price has exceeded Rs 107 per liter.
Among others, states like Rajasthan now have gasoline and diesel prices at Rs 112 and Rs 102 per liter, respectively.
“76 percent of Indian households want the government to reduce excise duties on gasoline and diesel as immediate relief. Of these, the majority want them to be reduced by 20 percent,” the report said. ‘investigation.