The government has decided to increase the prices of petrol by Rs. 3 per litre.

Question

Raghav earns Rs. 20,000 per month. Given in the table below is his monthly family budget.

Read the table to answer the question.

Item	Expenditures in Rs (per month)
Housing	5,500
Food	5,000
Education of 2 Children	2,500
Transportation	4,500 (Rs. 75 per litre and 2 litre per day)
Health Care	1000
Other necessities	1500

The government has decided to increase the prices of petrol by Rs. 3 per litre. 

What will happen to Raghav’s family budget? And how will it effect his family?

Answer 1

• The increase in the price of petrol influence the every family’s expenditure.
• Raghava’s family budget on transportation is increasing from Rs. 4,500 to 4,680 due to hike in petrol prices. 
• Along with transportation important daily commodities prices also increases. 
• So, Raghava family should reduce their daily expenditure to fulfill needs. It effect on Raghava’s family very badly.