The Society of Indian Automobile Manufacturers (SIAM) has welcomed the Government decision to reduce the differential between petrol and diesel prices by increasing the diesel price by Rs. 5.
Speaking on the development, Mr. S. Sandilya, SIAM President, said: “We welcome the increase in diesel prices as this step by the Government will help reduce distortion in fuel price up-to some extent. Diesel prices had been kept stagnant since June 2011 despite increases in overall crude prices in international markets. This price correction will certainly help the Government to recover some part of the subsidy going to the fuel account. It is also important to note that petrol prices have not been increased simultaneously, while excise duty has been brought down, giving relief to the oil industry. It is, however, difficult to predict the impact on the demand for vehicles at this stage.”