Diesel price hike preferred over excise duty hike- Mercedes Benz

A Mercedes Benz India official said a Rs 2 to 3 hike in diesel price would be more preferable than a price hike on excise duty, pointing out a hike in excise duty would further damage the slowing down auto market in India. In present scenario diesel variants have excise duties ranging from 12 % to 27% depending on size of the vehicle and engine capacity.

Mercedes Benz India CEO and Managing Director Peter Honegg said “We are not very happy with the discussion on excise duty hike. The government’s idea will not help at all as it will not bring more money into the pocket of the government. Instead it will only dampen the already slowing down buying sentiment. We would rather prefer a hike in diesel prices by Rs 2-3 per liter as it will result in more revenues for the government”.

He expressed his concern over the slowdown in markets. The economic slowdown has affected car makers in a big way, and the depreciating value of the Rupee is making matters worse.