Click it and Unblock the Notifications
Indian Carmakers Oppose Diesel Price Hike
Pawan Goenka, the president of Society of Indian Automobile Manufacturers has said decontrolling the price of diesel was a better option for the government. He also said the time was not right to impose a tax on diesel as the auto industry was in the middle of a slowdown.
The government appears to have dual opinion on diesel pricing. While planning commission deputy chairman Montek Singh Ahluwalia indicating the need to decontrol diesel prices,heavy industries minister Praful Patel said the government needs to continue subsidising diesel as part of its social obligation.
Demand for diesel cars has increased considerably in the past two years as petrol prices have sky rocketed. Diesel cars are more expensive than petrol cars due to the cost of technology and yet the demand has sustained due to their improved fuel economy and running costs when compared with petrol cars. If the price of diesel increases any further it will be a severe blow to Indian carmakers who have invested heavily to prop up diesel car production.
Continue with Google