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Firming global crude prices to impact fuel prices in India: ASSOCHAM
Jan-17-2017

Reacting to rise in wholesale price index (WPI) data for the month of December, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has said that WPI data clearly shows a pressure on prices coming from petrol and diesel following firming of crude prices in the global markets, with the increase in dollar value further inflating the impact on the fuel prices.

The industry body raised its concern over build up inflation which has reached 4.28 per cent in the financial year and said that the upward pressure on wholesale prices has come about despite a sharp drop in prices of vegetables that shows how the WPI may gather pace further once the seasonal price advantage of the vegetables goes away.

It further said that the steady and continuous rise in prices of crude oil and strengthening of US dollar for the last one month may have negative impact on input prices for the industry, which has already started the pressure on its profitability owing to low demand.

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