Massive Petrol price hike shocks common man and car makers alike

Thursday 24 May 2012, 12:49 PM by

The massive hike in the petrol prices yesterday has left shocked the cars makers and citizens of the country. The government on Wednesday announced a massive hike in the prices of petrol by Rs 7.50 per liter, raiding the concerns of the car makers who are already struggling with slowing down sales in the Indian market.

While facing stiff opposition and anger from allies after the announcement this price hike, Finance Minister Pranab Mukherjee said, "The decision has been taken, petrol is a deregulated commodity."

The Government’s key coalition partner TMC’s head Ms Banerjee said, "We are not like the CPM or other parties. We are for economic and political stability. Since we have a commitment to support the government, we are not exiting. But that does mean we will not protest what is wrong. What is going on is wrong, one-sided."

As per the industry experts, the latest price hike will further affect the already slowing down demand in the Indian car market. While the factors like rising input material costs, high interest rates have already worsen the situation in the Indian car market, the recent petrol price hike may take the car sales slowdown even further.

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