Ahead of the festive season, the surge in petrol rates has left consumers scrambling and cutting household expenses to adjust with the price hike, a survey said.

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"The festive season is nearing. Everyone wants to spend on gifts and do those much-awaited upgrades of the home appliances. But the roof-touching fuel prices have put a dent in the pre-festive season spirit," citizen engagement platform LocalCircles said in its latest survey.

"It is a big burden on the middle-class Indians and many of them are scrambling and cutting household expenses to adjust with the rising fuel prices," it said.

Around 78 percent households have plans to reduce or have already reduced their discretionary spending like eating out, leisure travel, movies, shopping etc, the survey said.

CNBC-TV18 caught up with Sachin Taparia founder and chairman of LocalCircles to discuss the findings of the survey.

Fuel pricing has been a top area of consumer concern, Taparia said.

Around 38 percent people have come out and said they are cutting on discretionary spending and 30 percent have already cut back, another 8 percent are saying they are going to cut back in the very near future," he said, adding that this is something that the government has got to keep in mind in terms of whether it is cutting their excise duty or the states cutting VAT.

"Very small percentage is going to spend more than Rs 50,000 in the festive season. It is an area of concern that only a small group is going to do its regular spending and maybe spend at a luxurious level but the majority are looking at bare minimum spending for the festive season," Taparia said.

With inputs from PTI.

First Published:Sept 18, 2018 11:00 PM IST