Here's How Rising Oil Prices May Push Household Budget Up
The rise in crude oil prices have been making headlines for a while now. Not just economies on a macro level, the rise in price can also impact your household budget. Recently, many brands have announced that appliances will become two to five per cent dearer starting June.
Get ready to pay more
According to a report published in The Economic Times, appliances brands, including Godrej, Voltas, Whirpool, LG and Samsung are expected to increase the prices of their products by two to five per cent. Of the wide range of appliances, the most impacted will be air-conditioners, washing machines, refrigerators and microwaves.
What has caused the rise in prices is the depreciating value of rupee, falling even below the benchmarked price. This has impacted the cost of steel and also, copper condensers that are largely imported from China. The only saving grace, brand managers say is the drop in prices of chemicals such as foaming agent.
The price rise is expected to range between Rs 400 and Rs 1,500 and likely to be even greater in case of some premium products.
While Godrej will hike prices by two to three per cent, Voltas will raise it by two per cent. In case of Samsung and LG, the number may go up to five per cent.
Impact on overall monthly budget
While crude oil is an important part of every household as a commodity, rise in its price has a direct impact on the household budget. While the difference in price of each commodity might not be much, the overall change in expenditure can shoot up beyond the budget set for the house.
The Finance Minister Arun Jaitley in his Budget Speech 2018 announced that a hike in duties of certain household products will make them dearer. This largely included imported products to discourage the common man from buying foreign brands and rather invest in Indian manufacturers.