GM, SIAM pitch for Re one hike on diesel prices

PTI Ahmedabad | Updated on March 12, 2018 Published on July 09, 2012

Terming the proposal to levy vehicle tax on diesel cars as a regressive step for industry, General Motors (GM) on Monday said that industry body SIAM and the company has recommended Re one per litre hike in diesel prices to the Government, with a view to end market distortion.

With vast disparity in fuel prices, the demand for diesel cars had reached up to 85 per cent and petrol cars had come down to 15 per cent, which otherwise usually remained at 50:50 per cent levels in India.

The petrol prices had touched Rs 78 per litre level in the recent past, while diesel prices have remained stable at over Rs 40-45 per litre or so.

“We as well as Society of Indian Automobile Manufacturers (SIAM) have recommended hike in diesel prices by Re one per litre as it would help government earn Rs 6,000 crore revenue,” GM Vice President Corporate Communication Mr P Balendran told newsmen.

“The government’s revenue earnings from Re one per litre hike shall be three times more as compared to Rs 2,500 crore revenue from the levy of 5 per cent vehicle tax on diesel cars,” he said.

The recommendation by GM and SIAM comes in wake of a Union Planning Commission’s study.

“The Planning Commission has conducted a study and the report has come out saying that privately owned passenger cars consume only 1.03 per cent of the total diesel consumed in the country,” Mr Balendran claimed.

“Therefore, what we have recommended is that levy of additional diesel tax is regressive step for industry,” he said.

“All OEM’s have recommended that right approach will be to increase the diesel prices in small doses and bring down the petrol prices in small doses, so that market distortion is addressed and the sector performs well,” he said.

Published on July 09, 2012

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.