115601
Auto industry welcomes move to hike diesel price
Posted on 28 Dec 20126,610 Views3 Comments
SIAM supports the government's proposal to hike diesel prices by Rs 1 for the next 10 months saying it benefits the automotive industry and the economy on the long run
Society of Indian Automobile Manufacturers (SIAM) Friday welcomed the central government's proposal to hike diesel and kerosene prices. "Though the proposed price hike of diesel is quite steep, SIAM would support rationalising of the hike and insists that it has to be done in a manner that should not adversely affect consumers," the automobile industry association said in a statement.
"It may affect the sales of vehicles for a short term but the elimination of price distortion will help the industry and economy in the long run," SIAM added. Diesel prices may be hiked by Rs.10 per litre over a 10-month period and kerosene rates by the same quantum over the next two years, says a proposal of the petroleum ministry.
Kerosene rates have not been raised since June 2011. A litre of the fuel currently costs Rs.14.79 in Delhi. "The government is contemplating raising diesel prices by one rupee per litre each month for next 10 months to bring retail rates at par with their cost," an oil ministry source said Thursday.
The government faces an unprecedented Rs.1,60,000 crore deficit this fiscal on selling diesel, cooking gas and kerosene below production costs. Diesel, which currently costs Rs.47.15 per litre in Delhi, was last revised Sep 14 with a hike of Rs.5.63. State oil companies sell diesel at a loss of Rs.9.28 per litre and the hike is expected to eliminate the losses.
Do you like this story?
- Previous Story
- Next Story
Readers' opinions ( 3 )
Post a Comment
Post a Comment-
Ashish
The only solution people find for this is MIGRATE to other good countries with less tax burden and good earnings :-)---Ashish
-
deepak
Will there be a downwardds revision in diesel car prices as well..
-
Anoop
Great! First they hike the prices of diesel cars coz they cudnt hike diesel prices.. now, there will be a hike in diesel prices too.. Ok, no worries. But once diesel prices have been hiked, who will restore the prices of diesel cars??!! Funny, the government finds new ways to tax and rob the public shamelessly, still no one bats an eyelid. India is plagued by corruption, crimes against women... the bloody list goes on! Will this ever end? Is there a permanent fix? A nuclear bomb maybe.. India Shining! Ha!
Domestic car sales up 23 per cent in October owing to festive demand
by ET Photos : Reuters
The festive season has spurred sales of...
Propelling Growth: India's Automotive Future
by Vikram Gour
The annual SIAM (Society of Indian Automobile...
M&M replaces Ashok Leyland as No. 2 commercial vehicle maker
by TNN
Both M&M and Ashok Leyland are investing in their...
24 Hours of Le Mans 2013 : Special Coverage
To be held from the 22nd to the 23rd of June, Le Mans 24 Hours will be celebrating its 90th...
Ford EcoSport : Special Coverage
The Ford EcoSport SUV for the Indian market has been officially unveiled and is slated for launch...
