Bad news for all! There are big fat chances that petrol prices
may go up by Rs. 3 soon after the elections in Uttar Pradesh and 3 other
states. By the month of March 2012, the petrol prices are likely to be
raised significantly. At present, IndainOil, who is India’s largest
petroleum marketing firm is losing Rs. 3.30 per litre on petrol because
of under recoveries. The hike in petrol prices will align it with the
global market prices. Therefore, the increase in petrol price appears to
be more likely when the oil ministry along with the marketing official
meet up for the very next fortnightly evaluation of the fuel prices. In
last couple of months, the crude prices are continuously going up, it
has now gone from $109 per barrel to $128 per barrel and in no time it
will reflect on the prices in the domestic market.
As the petrol prices go up on the scale it will hamper the auto
industry more and more, which is already going through a rough patch as
far as petrol car sales are concerned. The rise in petrol prices will
certainly give encouragement to the negative portion of the auto
industry. Right now, the diesel cars
are dominating the Indian car market and this could go on in the future
as well, but sadly this reign could come to an end as there is a chance
of massive excise duty raise at the 2012 Union budget. Therefore,
expect a lot of more cars, which would be powered with cheaper and low
CO2 emission fuels such as LPG and CNG. India’s largest car maker, Maruti Suzuki
India has plans to introduce CNG dual fuel car range very soon and this
could inspire the other automakers in the country as well. The soaring
loan interest rate is another terrible factor that is affecting car
sales badly.
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