Soaring oil takes us for a ride

Higher oil prices have led to a transformation in the structure of the Indian consumption basket. There are clear signs that transportation has become a more expensive item for consumers. If that’s not all, there is strong evidence that the consumer spends on transportation could be reducing the share of consumption on other goods as well.

Transport has emerged as the fastest growing consumption item in the last five years, occupying about 15.5% of private final consumption expenditure (PFCE) in FY05 up from the 12.9% level seen in FY02. It has grown over 11% in the past three years.
India Times