Petrol price hike in India even has Centre for Science and Environment protesting
The Centre for science and Environment voiced their displeasure in raising petrol by 5% from this Friday. The organization said that this will attract buyers towards diesel run vehicles which is a much cheaper fuel but would put the environment at risk.
Frequent rises in petrol prices has seen a steady fall in demand for petrol run vehicles and increased demand for diesel vehicles. According to Ms. Anumita Roychowdhury, Head of air pollution control team of this organization, excess use of diesel has an adverse effect on the environment due to release of toxic substances like NOx and ozone.
Increased demand for diesel cars which is currently at 36% is expected to reach 50% in the coming days. With the advent of cheaper and smaller cars demand is rising and so are health related risks. Cars are the major users of diesel. They account of 15% of total diesel in the country followed by 12% by buses and 10% by industry with only 6% by railways. Diesel emissions account for release of toxic substances which affect humans and unborn babies as well.
The auto sector which for past few months has been dealing with lower sales is readying itself for more doom in the coming months. The auto sector which had been recording a steady fall in sales is likely to be affected even further in the coming days. Bad news from two quarters is likely to contribute to these slacking sales figures.
Rising interest rates coupled with escalating petrol prices has seen a steep fall in auto sector sales. RBI’s recent declaration of increasing repo rates is about to adversely affect the auto sector even further.
Auto giants are trying to be optimistic about the upcoming festive season which usually sees a spurt in sales.
The news of the last few days regarding fuel hike by Rs. 3.14 ps coupled with RBI’s announcement is bound to affect these sales in a rather big way. Mr. Jnaneswar Sen, Senior Vice President – Sales and Marketing of Honda Siel Cars said that car sales would be badly affected due to these two reasons and sales growth would be badly affected.