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”.