Thursday, September 15, 2011

Petrol Prices hiked by Rs.3 per liter - High Impact on Auto Industry

Due to weak Indian Rupee and high international crude prices, State owned oil companies IOCL, BPCL & HPCL have raised the petrol prices by Rs. 2.61, effective midnight. After adding local taxes, the hike needed at retail level comes to over Rs 3 per litre.

Petrol price was freed from the government control in June last year but the retail rates have not moved in line with cost as high inflation rate forced the oil companies to seek 'advice' from parent oil ministry before revising rates. Petrol price were last hiked by Rs 5 per litre on May 15. 

By this hike the passenger car manufacturing companies will face the maximum brunt as they are already sufferring from a significant demand slowdown due to high interest rates and on top of that petrol prices keep going up which will bring down the demand even further.

Maruti Suzuki and Tata motors are expected to open weak in Friday's trade in India

1 comment:

  1. We need a more efficient and transperant way to get around this… Since there is just 3 companies that sell fuel in India, there is very less or no competition… Which obviously is going to create a monopoly…

    Coversly, as fuel prices start to come at par with Global market prices private players like Reliance are going to enter the market big time and capture the market in coming years… And times might get more difficult then… You won’t be able to shout against them, as their business aim will be profits!!!

    I think even now, we can’t do much than just shouting or blaming… Maybe re-estimate our own expenses via a website like www.mypetrolprice.com!!! Prepare yourself…

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