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Petrol Price Comes Down Finally by Rs.1.90
Petrol prices have been increased a whopping 13 times in the past 33 months after the fuel was deregulated by the central government. However the recent price hikes have not been to people friendly and the government was under severe pressure to reduce prices. Now with crude oil prices in the international market moderating to manageable levels the oil companies will be able to afford a price cut.
Petrol price has had a huge impact on carmakers in the past two years. Companies that did not even sell diesel cars in India were forced to build them after investing hundreds of crores in diesel car production. However this price cut in petrol will not be have a huge impact on carmakers yet as this is just a roll back of price hike that was announced last week.
The central government which is under pressure to control the ever increasing inflation and believes the petrol price reduction will help in its efforts. The common man is probably the person who will benefit from the petrol price cut more than anybody as petrol is the fuel used by the millions of two wheeler drivers. Car users at least have a choice of choosing between petrol cars and diesel cars but two wheeler users do not have that choice.
The two wheeler sector is showing signs of slowdown with sales coming down this October. Even as bank lending rates remain high, the reduction in petrol prices will help two wheeler manufacturers increase sales.
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