Latest Car News in India

Petrol price slashed by 95 paisa

This is what happens in once-in-a-lifetime but it has happened. Petrol prices have been reduced. Giving a breather to the already inflation irked common man, the oil companies on Thursday reduced price of petrol by .95 paisa per litre (not even Rs 1). The new price of petrol will be effective from today. This is believed to revive some sentiment and sales of petrol cars in India. However, the reduction is too small but it will have a good effect on the psyche of the car buyer. The greatest benefit of the petrol price reduction is believed to be on the Maruti Alto 800 sales and to some extent on Tata Nano sales.

 
It is said that price reduction has been triggered following the appreciation in the value of rupee over dollar. In Delhi the new petrol price is Rs 67.24 while there will be a state wise regional variation in the prices as the state taxes are different in different states. In Rajasthan the effective price reduction is to the tune of Rs 1.19 per litre. This is the second price correction since October 9 when the price of petrol was reduced by 56 paisa per litre.  

It is believed that Honda cars which are all petrol fuel driven will also have a brighter day now on as the oil companies believe that there will be another price correction soon. Therefore now buying a petrol car or owning it will be a little less painful and it is believed that if the trend continues, there could be a comeback of petrol car sales in India. Notably, the petrol prices were rising constantly since last year and this had a very bad effect on the sales of petrol cars in India. Consequently, diesel car sales rose to never before levels.