Majority of Indians cutting expenses to cope with high fuel prices: Survey

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SME Times News Bureau | 22 Feb, 2021
As petrol and diesel prices soar to record high levels, and petrol nearing the Rs 100 mark across metro cities, around 51 per cent Indians are cutting on their other expenses to manage their spending on fuel prices, showed a survey by LocalCircles.

Around 21 per cent of the respondents to the survey said that they are "cutting spending on essentials and it is painful" for them. Another 14 per cent are dipping into savings to pay for it.

The survey showed that around 43 per cent of respondents said that their monthly petrol or diesel bills were lower due to limited commute or work from home among other factors. Another 2 per cent reported no spending on the fuels.

On the question of what the respondents want their state governments to do for lowering the fuel prices, 32 per cent said that the government should levy an absolute value of the value added tax (VAT) instead of a percentage of the base price, and 47 per cent said the rate of VAT should be reduced.

There were, however, 8 per cent of consumers who said that the current VAT model is "fine".

The poll showed that 79 per cent of the citizens want their state governments to take action against rising petrol and diesel prices, either by lowering the VAT or levying an absolute value of the tax. Levy of an absolute VAT instead of a percentage VAT on the base price can help keep the prices relatively lower even if base price of petrol and diesel rises in the coming months.

The survey by LocalCircles to understand how Indians are coping with the skyrocketing rise of petrol and diesel prices in the last 12 months received more than 22,000 responses from citizens located in more than 291 districts of the country.