Price Hike India

Good Essays
he government on Wednesday decided to raise petrol prices by Rs 5 per litre and diesel by Rs 3 per litre that will result in freight charges going up. Currently, freight charges are about Rs 1.40 per tonne per km with an average of about 450-500 km for a company normally.

“The fuel price hike will have a cascading impact on all input costs. Cement prices will be impacted by about Rs 3-4 per 50 kg bag, and if we are not able to pass on the hike, it will definitely impact our margins,” said KC Birla, CFO, UltraTech Cement Ltd.

The cement industry is now in a fix whether to pass on the hike to consumers or absorb the increased cost. Experts believe that looking at the current scenario the possibility of passing on the increased price is very less.

Says HM Bangur, vice-president, Cement Manufacturers Association (CMA) and CMD, Shree Cement, “It will take at least a week to see the impact of the fuel price hike on the freight cost. This will depend on the transporters—how much they hike the price. Cement manufacturers depend on the transporters for transport as we don’t have this facility of our own. However, the margins will take a hit.”

The stock price of major cement companies on Wednesday were down on the Bombay Stock Exchange. Among the maximum losers include Saurashtra Cement (- 7.34%), Ambuja Cements Ltd (-5.46%), Mysore Cement (-3.87%), India Cements Ltd (-3.75%) and JK Lakshmi Cement (-3.08%), to name a few.

“The government’s move of increasing petrol and diesel prices has been largely in line with what was being expected in wake of the development witnessed with respect to global crude oil prices, which have been hovering in the $125-130 per barrel range. However, this is negative for the cement industry as a large part of its transport is through roads. The fuel price hike will act as an added woe for the industry,” said Hitesh Agrawal, research-head, Angel

You May Also Find These Documents Helpful

  • Powerful Essays

    Price Hike

    • 1549 Words
    • 7 Pages

    PRICE HIKE To understand this term we divide this term into two parts; Price and Hike and explain both the parts separately. Price is the value paid by the provider or supplier in the form of currency for rendering goods & services. While Hike is an abrupt increase or rise. It means that there is rise in prices of the goods/services required by the people living in the world. These goods/services belong to following sectors; 1. Agriculture 2. Health and Medicine 3. Education 4. Manufacturing/Industries…

    • 1549 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Price Hike

    • 1865 Words
    • 8 Pages

    Price hike:- Price rise send family budgets haywire NEW DELHI: Even as India's economy is said to boom, millions of its citizens are groaning under soaring prices of vegetables and food grains and | | wish the government would do something about this, reports from across the country say. From Chandigarh in the north, to Ranchi in the east and from Bhopal in central India to Kerala in the south, a cacophony of voices has been raised against the relentless price rise, with the common man…

    • 1865 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Price Hike

    • 413 Words
    • 2 Pages

    India is facing many serious problems nowadays, but the problem of price-rise is the most serious one. It is very common these days. The prices of essential commodities are going higher day by day. India is passing through a very hard time nowadays. The problem of prise-rise has become very serious. The government is unable to control the prices of necessary goods. The rise in prices is natural in a developing county like India. But when it goes out of control, it causes great difficulties for…

    • 413 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Ramadan Price Hike

    • 1707 Words
    • 7 Pages

    which is increased tension and worry that is caused by the uncontrolled price increase of the daily essentials. Each year before the month of ramadan, the prices of the daily essentials increase twise or even thrice as much. Every year the government tries his best to control the price hike of the daily essentials but fails eventually. But this year, the government has taken some unprecedented steps to control the price hike. It is quite an admirable fact that the government has addressed this issue…

    • 1707 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Price Hike in Bangladesh

    • 5782 Words
    • 24 Pages

    ABOUT RECENT PRICE HIKE IN Bangladesh | March 4 2010 | Prepared For-Kaikobad Rana Sir | Submitted By-Overcome Group | Group Members Of Overcome- * Group Leader- MD Sazzadur Rahman Chowdhury ID-082011013, Sec-A, 3rd Semester * Administrator- Riad Morshed Chowdhury ID-082011012, Sec-A, 3rd Semester * Researcher- A.F.M Maruf Rahman ID-082011035, Sec-A, 3rd Semester * Members- MD Rafiqul Islam ID-082011022, Sec-A, 3rd Semester Atiqur Rahman ID-082011017…

    • 5782 Words
    • 24 Pages
    Powerful Essays
  • Powerful Essays

    Petrol Price Hike

    • 1374 Words
    • 6 Pages

    Impact of Petrol Price Hike Economics State-run oil companies announced a hike of Rs 7.50 per litre in petrol prices - a direct fall-out of elevated international crude oil prices, which had until now not registered a pass-through in domestic market prices; thereby impacting the financial and liquidity position of oil marketing companies (OMCs) in the country. A depreciating rupee has only added to this pressure. While diesel and LPG prices have been left untouched, this move is expected to provide…

    • 1374 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Petrol Price Hike

    • 331 Words
    • 2 Pages

    PETROL PRICE HIKE!!!!! Today ,I geetika bajaj would like to throw some light on a very burning issue of 21st century for which I would like to ask u a question about something u do daily? U’l tell me brushing bathing n all dat. But now a new thing that has intruded our daily routine –is The inflating /ballooning Price of Petrol!!!!!! One gets out of the house ,drives his vehicle and reaches his destination activating his brain cells thinking of any new shortcut to his destination – the reason…

    • 331 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    SINHGAD INSTITUTE OF BUSINESS MANAGEMENT (Affiliated to Mumbai University) To Study the Hike in Fuel Prices in Mumbai from Period January 2011 To September 2013, And It’s Impact On Customers Buying Behavior In Automobile/Car Sector. Guided by, Dr. Rhizu Krishna Submitted By, SwarupaMandhare-90 Tauseef Ahmmed-91 UrviGohil-92 VickyAshar-93 VijayTidole-94 Vinita Kale-95 Declaration:- To study the consumer buying behavior, our group has conducted a survey among 100 people with…

    • 10907 Words
    • 44 Pages
    Powerful Essays
  • Best Essays

    Introduction The recent increase in the price of food, especially rice, has been a cause of concern all over the world and has been critically important issue in Bangladesh; as a net importer of food, the price has closely followed the trend of international markets. The result of this unusually high rate of inflation has had a direct bearing on the poverty status of the country as the incidence of poverty is intimately related to the change in food prices due to the fact that food constitutes a…

    • 5009 Words
    • 21 Pages
    Best Essays
  • Good Essays

    India has 2nd largest population in World, everyone knows that. Government has lot of options to make tax money and lower cost of fuel and cost of many other things by covering that tax money and applying it to keep prices of fuel and other things low. Actually they do not even need to search for more options. All they need to do is, make sure all follows laws of tax. Implement it, and apply it well. Fuel price must be kept lowest, that’s best way to control price rise and allow common people a…

    • 657 Words
    • 3 Pages
    Good Essays