Difference between price of petrol (gas) and diesel in India needs to be rectified

The government’s move to up excise duty on diesel vehicles seems to have angered many in various sectors. Automobile companies are livid with the decision and have expressed their displeasure. Heads of major automobile companies have decided to protest against the decision that experts point out will affect the balance of diesel and petrol variants.

The heads of auto companies met with top officials of the finance ministry to protest and discuss the situation to prevent it from spiraling out of control. Among the many heads of Automobile companies were, Shinzo Nakanishi, Managing Director Maruti Suzuki India, P.M Telang, Managing Director Tata Motors and Pawan Goenka, President (Automotive and Farm Equipment) Mahindra & Mahindra.

The heads of Auto companies have urged government bigwigs to find a solution that works for petrol and diesel cars. At the moment sales of petrol vehicles have dipped whereas the demand for diesel variants has skyrocketed, this because of the huge price difference in diesel and petrol. The government should try and take steps to reduce the gap between price of diesel and petrol.

Mr Mayank Pareek, said, “Petrol car sales are very low in these days as the market sentiment is down … Normally, we have inventories for three weeks. However, for petrol models, it is now around four-and-a-half weeks.”

Mr Vishnu Mathur, Director-General, SIAM (Society of Indian Automobiles Association), said, “Reducing taxes on petrol can help to bring down the petrol prices and on the other hand, a moderate hike in the administered prices of diesel by Rs 2 to Rs 4 can significantly narrow down the gap between the prices of petrol and diesel without stoking long-term inflation.”