Assocham has anticipated that effect of price rise of fuel will be echoed clearly in the expected rise in inflation by 15% by the amplified ingestion due to the forthcoming festive period and also announced 18% upsurge in inflation due to change in consumer price.

With the festive season approaching, the complete influence of prices of petroleum products would become more and more evident with the transportation costs escalating.

The fear of double digit inflation is also being anticipated by the advisory panel of the Prime Minister keeping in mind the rise in inflation from 10.16% in May to 10.55% in June.

Reserve Bank of India is already making efforts to control inflation by constricting its monetary policy and increasing short term lending and borrowing rates.

It was also brought forth that the fuel rates could also be destroyed due to the interrupted provisions of food and other consumer goods as heavy rainfall would lead to scarcity of supplies.

Another reason for the inflation of fuel prices was described by the chamber as the demand of every commodity due to the impending season of celebrations.