Consumer Perceptions towards Rise in Fuel Prices – With reference to Chennai City

Purpose: The purpose of this study is to identify the reasons for rising fuel prices. The other purpose of this study include ranking the income distribution pattern of consumer before and after rise in fuel prices. Methodology: The data for the study is collected through 50 consumers in Chennai city. IBM SPSS 22 version software is used to process and analyze the collected data for the study. Findings: The study identifies that high taxes charged by the central government is the major reason for rise in petrol prices. The consumers gave priority to savings for future uncertainties before fuel price rise however increase in prices of fuel has resulted in future savings as less priority one. Implications: The results of the study indicate that taxes on fuel has to be reduced. The study also price-ceiling for fuel prices. Originality: While many research studies focused on importance of fuel prices in the growth of the economy, this study seeks to study consumer perceptions with regard to fuel prices and its impact in their spending preferences.