How Do Rising Petrol & Diesel Prices Impact Your Monthly Budget?

Rohan filled his car’s tank for ₹4,800 last month. This month, he is paying ₹5,200 for the same fuel quantity. His driving habits have remained the same, and he travels the same distance and on the same route.

And now he is missing ₹400 from his budget. He could have used it for a weekend movie plan, to pay a utility bill, or for anything.

It might not look like much now, but what if he starts losing ₹400 every month like this?

Even a slight increase of ₹5 per litre can impact your finances in unexpected ways.

The Fuel Price Hike: What is Really Happening?

Over the last ten years, the price of petrol has increased in many cities from ₹65 per litre to ₹100 per litre.

“Petrol ka rate sunte hi lagta hai….

Itna sannata kyu hai, bhai?”

Historical Per Litre Price Trend of Petrol and Diesel:

A small hike of ₹3 to ₹5 can greatly impact the monthly budget. For an average two-wheeler or car owner, it can easily increase by ₹200 to ₹500.

Real Life Example

Hemant travels daily from home to work and vice versa on his bike, covering around 20 km in a day. His office has 26 working days in a month. His bike gives him an average mileage of 45 km per litre.

We can calculate his monthly fuel consumption:

• 20 km × 26 working days = 520 km per month

• Required Fuel: 520 ÷ 45 km average mileage per litre = 11.5 litres per month (approx.)

   

We can see that a ₹10 per litre hike in petrol increases Rahul’s transportation cost by ₹230 per month and  ₹2,760 per year. 

While coming back home from work Hemant always thinks “Petrol ka rate badhta hai, par salary nahi! Ye dukh kaahe nahi khatam hota!!”

How Rising Fuel Prices Are Affecting Other Areas Of Your Life?

Rising fuel prices not only affect vehicle owners. It affects almost every expense in your budget, from buying ₹200 vegetables to paying ₹5,000 for your child’s school bus.

1. Groceries become costlier

Due to the price change, a diesel truck transporting vegetables and fruits from villages to cities is now spending more on diesel. This will increase the cost of groceries, and you will also have to buy groceries at a higher price.

2. Rise in Transport Fare and Delivery Charges

Autos, buses, taxis, and food delivery apps all adjust their prices as soon as fuel prices change. 

If you take 10 such trips in a month, your cost will increase by ₹200 to ₹300.

3. Increase in Price of LPG Cylinders and Household Utilities

You might know that global crude oil prices mainly influence LPG (cooking gas) prices.

In 2020, one LPG cylinder used to cost around ₹650. Currently, it ranges from ₹900 to ₹1,100, depending on your location.

If you are using one cylinder per month, then you will pay ₹300 to ₹450 more; annually it will be ₹3,600 to ₹5,400.

If you think that why maintenance or society charges increase by ₹200 as soon as fuel prices rise by ₹5? Then the answer might be diesel-run generators powering your society during power cuts.

4. Your Monthly Budget Before and After Rise in Fuel Prices

Increasing prices of petrol and diesel have a significant impact on an average family’s monthly expenses. The table below will help you get an idea about your monthly budget before and after a change in fuel prices:

As you can see that’s a huge rise of ₹2,500 monthly and ₹30,000 yearly. With such an amount, you can easily fund your family vacation or pay six months of school fees.

The Hidden Emotional And Lifestyle Costs

Rising fuel costs don’t just eat into your wallet. It also brings emotional strain:

• Couples postpone buying vehicles.
• Families reduce weekend outings to save on fuel.
• Lower quality of life due to tighter budgets
• More reliance on public transport, even when it is uncomfortable

These are the invisible costs that people rarely calculate but feel deeply.

What Can You Do To Save Money?

You cannot control the price changes of petrol and diesel. But you can change your response towards it:

You might have get an idea by now that by making a few smart changes, you can easily save ₹2,000 to ₹4,000 monthly.

Final Thoughts

Your monthly budget can get influenced by the rise in petrol and diesel prices. You can see that from your groceries to your school transport, the influence is real.

It is essential for you to stay aware, manage your expenses, and change your habits to manage your finances.

You should know that rising fuel prices impact all corners of your life, whether you are a homemaker, small business owner, or salaried person.

But, responding smartly to such changes can help you in saving your money. 

FAQs

1. How often do petrol and diesel prices change?

Prices of fuel can change daily based on global oil rates and local taxes.

2. Why do fuel prices increase even when crude oil drops?

It increases due to the taxes and other charges as they are a big part of the price.

3. How much does a ₹5/litre petrol hike affect my monthly budget?

It depends on your usage. However, it can make an impact of ₹300 to ₹600 more per month.

4. If I switch to electric vehicles will I be able to really save money?

Yes, you will save money in the long run.

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?