SIAM requests government to reconsider petrol price hike

Friday 25 May 2012, 11:15 AM by

Following the all round protest from car makers over the recent petrol price hike, the Society of Indian Automobile Manufacturers (SIAM) has asked the government of India to bring parity in the petrol and diesel prices by considering a hike in the diesel prices, while at the same time reconsidering the petrol price hike.

In a statement released on the matter, SIAM said, "SIAM requests the government to reconsider its proposal for such a steep increase in the price of petrol and to seriously consider the option of a moderate increase in the price of diesel before it impacts the growth of the industry."

In last one year, there gap between the petrol and diesel prices has been going widen and widen, slowing down the demand for petrol run cars and shooting upwards the demand for diesel run vehicles. The industry body said that the government of India needs to look at the petroleum product pricing policy, so the distortion in the market of downstream products can be removed.

The industry body added, "The need of the hour is to bite the bullet by reducing the price hike on petrol and revising the price of diesel, which will bring in more revenue to government as well as some level of parity between the two competing fuels for automotive industry."

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