Denim products are likely to get costlier as manufacturers in country's largest denim producing state of Gujarat have hiked the fabric prices by Rs 5-6 per metre amid soaring cotton and polyester prices, industry sources said on Monday.
Auto industry volumes have grown by 2.5 per cent overall, led by domestic sales of three-wheelers, two-wheelers and passenger vehicles (PVs) in the first quarter of this financial year. Analysts predict an 18 per cent growth in revenues for automotive original equipment manufacturers (OEMs) and profit growth of 69 per cent year-on-year (YoY). However, on a sequential basis, a decline in revenues as well as earnings before interest, taxes, depreciation, and amortisation (Ebitda) margins is expected.
Amid the political push and pull, the Centre's decision to allow sugar exports and remove the 50 per cent duty on molasses exports has rekindled hope in the industry that more relief may follow.
The hikes, effective from midnight tonight, are excluding state sales tax or VAT and actual increase will be higher and will vary from city to city
The Cabinet Committee on Economic Affairs on Wednesday deferred a decision on the package on pricing and distribution of sensitive petroleum products.
Financial services majors Citi and HSBC said the long awaited government decision to hike fuel prices is a positive step, although it will fan the already high inflation and may not prevent fiscal slippage.
'We expect this festival buying spirit to continue in October as well, with upcoming festivities including Dhanteras and Diwali, which traditionally witness spirited buying from customers.'
The company, which currently sells a range of vehicles from Alto to S-Cross, said it has taken the decision to hike prices due to an increase in input costs. The weighted average price rise, with effect from April 18, in ex-showroom prices (New Delhi) across models is 1.3 per cent, it added.
If sources in the Congress party are to be believed, a hike in the price of petrol, diesel and cooking gas seems "inevitable".
The steep hike in petrol prices evoked mixed reactions with a section of industry saying the move would further burden the comman man even as policy makers and experts felt the increase would benefit the economy in the long run.
"There are limits to which we can keep consumer prices unaffected by rising import costs. Our oil companies cannot go on incurring losses. This way they will have no money to import crude oil from abroad," the Prime Minister said in an address to the nation.
The Congress core group, which includes UPA Chairperson Sonia Gandhi, will meet to vet the proposal before it goes to the Cabinet.
The aviation turbine fuel (ATF) prices have been raised by Rs 2,750 per kilolitre effective midnight tonight, Indian Oil Corporation (IOC).
Acting as a dampener ahead of the festive season, Maruti Udyog Limited today effected a 0.2-1 per cent price hike in all its models except Swift, due to an increase in input costs including freight costs.
In June, the government had decontrolled petrol, causing a hike of Rs 3.5 per litre, and increased diesel prices by Rs 2 a litre, LPG by Rs 35 a cylinder and kerosene by 3 a litre -- amid protests by opposition parties.
The government has allowed oil companies to raise diesel price by 50 paise a litre per month; bulk users to be charged market price.
Petroleum Minister Mani Shankar Aiyar on Tuesday indicated that the government would increase petrol, diesel and LPG prices, but also cut duties in a bid to contain the impact of surge in international oil prices.\n\n
Amid a spate of government proposals at its door, the Election Commission has asked all Union government departments to route their proposals through the Cabinet Secretariat.
The Union Cabinet on Wednesday increased Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent for about 49.19 lakh central government employees and 68.72 lakh pensioners.
'In the long run, India's strong growth story and reforms to make assets globally attractive will determine the rupee's resilience.'
Asked if petrol and diesel prices would be raised on October 15, the next due date for auto fuel price revision, Aiyar said: "Only God knows and the prime minister know."
Sources say that this is a part of the government's efforts to mitigate the spurt in global oil prices.
Reliance Industries on Friday dubbed as a "canard" allegations that the near-doubling of natural gas prices will lead to a similar hike in domestic cooking gas (LPG) and inflation in food item rates.
Petroleum Minister Murli Deora on Monday ruled out any rollback in the increased prices of petroleum products, saying the hike has been reasonable and minimum. "The hike is reasonable and minimum ...," Deora told reporters here.
Politicians appeal to key groups of voters like farmers or the poor by keeping prices low and ignoring theft, prompting scepticism about whether states will agree to any package that forces tariff hikes.
The government on Tuesday ruled out any rollback of last month's increase in prices of petrol, diesel and LPG, and said a policy for pricing of major petroleum products was under review.
The nationwide strike on Tuesday called by the Left parties against the hike in petrol and diesel prices evoked a mixed response with it getting unruly in some parts of the country.
Petrol price was tonight hiked by about 35 paise per litre in line with firming raw material cost.
The government is likely to decide within the next two days whether to hike petrol and diesel prices to provide some relief to state-run oil marketing companies, Petroleum Minister Murli Deora indicated on Monday.
The opposition party vowed to hit the streets against the "Modi-made inflation" and run a people's movement over price rise.
Left parties would launch an offensive in the forthcoming monsoon session of Parliament against the United Progressive Alliance government hiking prices of petroleum products, Communist Party of India-Marxist member of the Parliament Basudeb Acharya has said.
The country's largest carmaker Maruti Suzuki India (MSI) on Monday said it has increased prices of its entire product range, except Celerio, by up to 1.9 per cent with immediate effect. In a regulatory filing, the company noted that it has taken the decision to hike prices due to an increase in various input costs. The weighted average price rise in ex-showroom prices (New Delhi) across select models is 1.9 per cent, it added. This is MSI's third price hike this year.
Aviation turbine fuel or jet fuel price was on Wednesday hiked by a steep 9.2 per cent, while that of non-subsidised cooking gas was raised by Rs 21 per cylinder.
The BJP on Tuesday announced a nationwide agitation, including a two-hour 'rasta roko'(road blockade) on Wednesday to protest the hike in petrol and diesel prices and the UPA government's "failure to hold the price line".
Cooking gas LPG price on Wednesday was hiked by Rs 15 per cylinder in line with a surge in international fuel prices. Rates of both subsidised and non-subsidised LPG prices were hiked, oil company officials said. Cooking gas now costs Rs 899.50 per cylinder in Delhi.
Rather than complaining about the rise in petrol prices, Aditya Prasad suggests some really simple steps to deal with it.
Petrol, diesel prices hiked by 40 paise
In four hikes over four days, petrol price has gone up by Rs 2.14 per litre and diesel by Rs 2.23.
