Rising Fuel Costs Could Squeeze Indian Household Budgets

Global crude oil prices have surged over the past month, putting fresh pressure on petrol and diesel prices across India. For middle-income households, transportation and logistics costs typically account for 8%–12% of monthly spend.

Practical steps to cushion the impact include shifting short commutes to public transit, bundling errands, maintaining correct tyre pressure, and exploring EV options for replacement vehicles. Catfin's auto loan partners are offering preferential rates on electric vehicles as part of India's green mobility push.

If fuel-linked inflation persists, expect it to filter into groceries and consumer goods within two quarters. Building a 3-month emergency fund in a high-yield savings account can help you ride out the wave without dipping into credit.