Fuel price hike to hit Asom

Guwahati, June 16 : The recent hike in petrol and diesel prices is expected to hit the North-east markets hard as the region is heavily dependent on road transport for essential items.

With railway connectivity being limited and local production inadequate to meet the demands of essential items, including food grains, the region relies on supply of goods from the other parts of the country through road.

The hike in fuel prices is expected to have a negative impact on prices of food items as the cost of transportation would go up.

The Congress-led government in Asom had announced exemption of sales tax (VAT) on petrol and diesel on June 10.

However, the relaxation would see only a marginal decrease of 86 paise in the cost of per litre petrol and 28 paise in per litre diesel. Moreover, the petrol pump owners are yet to comply with the directive.

Assam Chamber of Commerce Vice-president Rupam Goswami informed that the fuel price hike is yet to have any impact on the prices of goods in the state.

He said, ''The fuel price rise is likely to have an effect but the extent of it will depend on the transporters. The effect will be more on items like mustard oil and vegetables, which enter the state through the roads.'' He said a certain picture of the impact of the fuel price hike would be available after about 10 days and added that the current market price of goods in the state was at par with prices in the previous years during this period.

Prices of fresh vegetables and other food items rise during this time of the year as the state remains in the grip of annual floods.

With the floods already causing substantial damage and the weathermen forecasting more rains, prices of essential food items are expected to rise further.

Mr R Deb Chowdhury, a bank employee, said, ''The fuel price hike has not only made us think twice before planning a car trip but also effected prices of goods. Transportation costs have gone up and the dealers are passing on the burden to the customers.'' Mr Khanin Das, manager of an agency which runs trucks to the state from the mainland, added, ''Though we have not imposed an increase in transportation charges at the moment, we will have to consider it soon.'' The Jorhat Hotel and Restaurant Business Association has already declared hike in prices of namkeens and sweetmeats. However, the hike was triggered by overall rise in prices since 2001, when the rates were last revised, an official of the association said.

With most people associating rise in fuel prices with hike in bus and auto fares, the exact extend of its impact on prices of essential commodities is hard to gauge.

As Mrs Ranju Hazarika, a housewife, said, ''Prices of food items have always gone up with every passing year with no signs of taking the reverse trend. This latest fuel price hike is just another pretext for increasing prices of goods.''

UNI