State owned oil companies have announced a Rs.2.26 cut in petrol price per litre effective from today. The decision was taken after a sharp decline in crude oil prices in the international market. This is the second petrol price cut after a steep hike of Rs.7 earlier in May.
The two petrol price cuts have effectively reduced the fuel's price by Rs.5. The news is a very happy news for carmakers across the country as high petrol prices had drastically reduced petrol car sales in recent months.
Carmakers such as Maruti Suzuki, Hyundai and Honda have seen sales of their petrol cars drop drastically. They have heaved a sigh of relief after the announcement of the petrol price cut was made. The Senior Director of the Society of Indian Automobile Manufacturers- SIAM Mr.Sugato Sen in his statement said: "It is a very good step for the auto industry. We need much more such steps to reduce the price differential between petrol and diesel."
Honda Siel Cars India Senior Vice President (Sales and Marketing) Jnaneswar Sen said the petrol price cut was a positive step. He added: "However, it is still not enough to have a level playing field between petrol and diesel vehicles as the gap in the prices between the two fuels is very high."
High petrol prices have had a severe impact on car sales in India. The recent hikes had resulted in several car showrooms reporting zero sales of petrol cars in recent weeks. The cut in petrol prices will help carmakers set the balance which has so far been skewed towards diesel cars.