The Impact of Fuel Price Hike on Consumers (A Study with Special Reference to Palani Taluk)

Abstract

The fuel prices are a significant determinant of worldwide economic performance. The fuel price rise results in a transfer of income from fuel importing to fuel exporting countries according to a shift in terms of trade This price hike not only affected at macro level but also to every individual users. . Increase in fuel price will also increase in food price. This will have a more severe impact on poor people because poor households spend more than half of their income on food and only a tenth on fuel.  This price hike affects all range of people especially who are in middle class. Hence, an attempt is made to assess the impact level towards the raise in price of fuel.