SIAM pushes for deregularisation of diesel fuel price

Society of Indian Automobile Manufacturers (SIAM) has stated that offering diesel subsidies is no longer a viable option and the Government of India should look at the possibility of deregularisation diesel price. SIAM has stated that offering subsidy to poor farmers can be continued through direct credit route, however where the auto industry is concerned general prices for the market should be deregularised.

This will help to reduce the gap between diesel and petrol prices which will, in turn, have a positive effect on the Indian economy. With the Union Budget 2013 round the corner, it is hoped that the government will take appropriate steps to improve investment and infrastructure in the country. SIAM is also not expecting any significant growth in the auto sector during the current year specially taking into account the scenario during the past year and in particular sales during the last quarter of 2012.

2013 is not expected to see any significant increase though auto sales during the year will be governed by what decisions are taken by the Government in the upcoming budget.

Source: ET