After the recommendations proposed by Kelkar panel to the oil ministry and an indication by Prime Minister Manmohan Singh and the petroleum ministry to hike fuel prices, SIAM an industry body for auto manufacturers in India has welcomed the move.
Commenting on the development SIAM says “Though the proposed price hike of diesel is quite steep but SIAM would really support the rationalizing of prize hike and also insists that the rationalizing has to be done in a manner which shouldn’t affect the consumers adversely. It may affect the sales of vehicles for a short term but the elimination of prize distortion will help the industry and economy in the long run”.
No Siam no. Please do wider study in energy providing petro products rather than only concentrating on motor fuel and bothering about under recoveries. Real cause of petro products imbroglio is lpg and kerosene subsidy which is not at all needed as solar and raw g grade coal are free and infinite indigenous substitutes. My solar cooker is making kheer as prasad for my birthday and aloo pyaaj ki sabji today even in this cold wave. Motor fuel under recovery is due to high taxation on them and that should be reduced after providing lpg and cooking fuel at proper taxed prices. Siam you can see under recoveries which are Rs 160000 crore but are not able to see Rs 2 lac crore which government of India and state gets from oil sector. Only solution to problem is to provide petro products at the price based on energy content in unsubsidized and free market basis keeping taxation according to inflationary pressure and crude prices Siam.