In the last five years, petrol prices in Jammu have been more than double the national average. At the same time, the average amount of money that the Indian driver needs to fill up his car is less than half of what it was five years ago. And when you consider the fact that the average Indian pays over Rs 3,000 per month for a car, the impact on the price of petrol is immense.
The question of why the prices have gone up has been a touchy one for economists. It’s easy to say, “It’s because I’ve got more money to spend.” But in this case, the reason the prices have gone up is because more people are buying cars that are more fuel efficient. As the economist and Indian Auto Association member Gaurav Mishra points out, the demand for cars has increased.
The impact of the price hike on the Indian economy is also huge. A single increase in the price of petrol will raise the price of a car by almost Rs 5,000. At the moment, the cost of a new car is approximately Rs 18,000.
Of course, we all know that the reason prices have gone up is because of fuel prices. But the reason for the increase is much more complex. The reason for the increase is because of increased competition from foreign car makers. Cars that use less fuel can also be sold for a lower price, because less fuel is used to make the car, and so its less likely to break down.
Competition from foreign car makers is not because of fuel price, but because of the price of petrol. The reason for this is that the cost of doing business in India has increased, and this has led to increased competition for a large number of Indian automakers.
In fact, many people are using less fuel, and so the price of fuel in India has become cheaper for the average Indian.
While the cost of petrol in India is increasing, the price of petrol in Delhi has remained stable. It is still higher in rural areas, than in the cities. But the price of diesel, which is what fuels our cars, has continued to rise, and now stands at Rs 10.5 per litre. The price of petrol in Jammu has also increased, and now stands at Rs 10.70 per litre.
That’s not very good. To be fair, in the western world, where the cost of petrol is relatively low, the price of diesel is still high. But it’s still high, because the cost of diesel in most western countries is still high. The cost of petrol in India isn’t that much lower than in western countries.