Fearing the sharp hike in petrol prices to hit the automobile industry adversely, the industry body, SIAM has asked the government to reconsider the hike and consider an increase in the prices of diesel instead. The recommendation is based on the fact that due to the large difference in the prices of petrol and diesel, the sale of diesel cars has gone up whereas that of petrol cars has reduced. This is expected to leave resources meant for petrol vehicle production useless, unless appropriate market oriented policies are put in place. Also the sharp increase in petrol prices will hit middle class customers who mainly own two-wheelers and the small cars.
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