SIAM Welcomes Government's Decision to Reduce Fuel Prices Differential
The price rise in diesel has hard hit all and will worsen situations further as it will result into sky high rates of all commodities as transportation costs are expected to rise as well, as a result of this Rs. 5 hike. Coming to the Indian auto industry, the Society of Indian Automobile Manufacturers – SIAM has welcomed the decision of the government as it results to reduction in the differential between petrol and diesel prices.
The continuous rise in petrol prices distorted the balance between diesel and petrol cars which was resulting a lot of problems at the car maker’s end, thus the support from SIAM as diesel price hike will help carmakers create a balance. Speaking on the development, Mr. S. Sandilya, President, 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.”
He further added that this price correction will help the government recover a part of the subsidy that is currently going to the fuel account. He also said that what impact will this price rise have on the demand of vehicles is difficult to predict.