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Diesel prices to increase by Rs. 10 in 2013

Bad news for all, specially the diesel vehicle owners! The Oil Ministry of India has mentioned that the diesel prices might be increased by Rs. 10 in next 10 months. This means it will be a hike of more than 20%, which is quite high. The last rise in price of diesel was done in September 2012, when the price of diesel was rose by Rs. 5, which was the highest in recent years. This price rise in September led to massive mass protests across India.  

With the hike of Rs. 10 in diesel prices, it will have a bad effect on the wholesale price index. Diesel is subsidized by Indian government and this subsidy has been burdening the exchequer. Right now, the state owned oil companies are down with Rs. 9.28 on every litre of diesel that is being sold in India.  Therefore, we can say that the price hike in diesel might chop down the subsidy from government and this might be the same reason to increase the price of diesel. Also, this increase in price of diesel also has chances to drop down the car sales in the Indian auto industry.

Currently, the demand of diesel cars is extremely high in the Indian car market and the reason behind this is the sky-rocketing prices of petrol. The present situation in the auto industry in India showcases that the sales of diesel cars are way more than that of petrol cars. Furthermore, the fuel efficiency of diesel cars is also better than the petrol cars. Let’s hope that the Oil Ministry of India reconsiders its decision and rethink upon this. This will certainly increase the worrying situation for a common man and make it more difficult for him to purchase a diesel vehicle in future.