The Society of Indian Automobile Manufacturers (SIAM) has welcomed Governments move to de-regulate the price of diesel in the country. With the price of diesel becoming market oriented, the huge under-recoveries on this account would disappear enabling the oil industry to invest in the next generation of cleaner and more environment friendly fuels for the auto industry.
This move will also usher in private players which will make the fuels market in India truly competitive thus benefitting the customer. ———This is a long awaited measure and I am extremely happy that the Prime Minister has seized the opportunity of deregulating diesel price at a time when crude prices have fallen resulting in a reduction in diesel price due to the de-regulation———, said Vikram Kirloskar, President of SIAM.
Kirloskar also said that with the diesel price getting de-regulated, he expects that the debate on whether a higher tax should be imposed on diesel cars to recover the diesel subsidy would also come to an end. He commented that this was a most correct and forward looking measure which proves that the Modi Government is now seriously focusing on implementing the long-pending economic reforms that would propel the country into its next high growth phase.