New Delhi: Expect the discounts on petrol cars to get sweeter, and the waiting list on diesel cars to be longer. The steep Rs 7.50-hike in petrol price is set to further fuel the demand for diesel models as the fuel’s lower running cost and steady pricing will add to its attraction. While sentiment in the car market
remains weak — hit by inflation, slowing economy and pinching petrol price — diesel models will be the only succour for carmakers and buyers.

Japanese carmaker Honda may roll out its first diesel car in India in the first half of 2013 as the fresh increase in petrol price is widely expected to dent demand for petrol cars, three people familiar with the development said. “The earlier plan was to bring in the diesel cars by 2014, but with the widening disparity in petrol and diesel prices, the company is compelled to push harder to bring in its diesel cars earlier,” one of them said.

New Delhi State-owned fuel marketers IOC, HPCL and BPCL on Thursday ruled out an immediate rollback of the steepest petrol price increase of R7.5-R8 a litre from Thursday night but conceded that if the government instructs them to cut prices, they have no other go but to follow their majority shareholder.

They also indicated that if petrol price falls in world markets or rupee strengthens against the dollar this fortnight, the resultant gain shall be passed on to the consumer by way of a price cut.

Companies expedite plans to roll out more models to meet demand

New Delhi, May 23: The raised petrol prices and the untouched diesel reflect a disturbing trend that is pushing consumers towards private diesel vehicles and hurting the country’s environment, health and economy, analysts have said. The increase announced today will mainly jack up the fuel bills of owners of small cars and two-wheeler motorbikes, the analysts said, pointing out that most big cars, and virtually all of public transport, freight trucks and railways run on diesel.

Calling the Rs.7.50 increase per litre in petrol price shocking, Delhiites on Wednesday expressed their outrage at the Central Government's “inconsiderate” move.

“The Government has clearly not taken into consideration the already sky-rocketing cost of living. Rising fuel costs and the lack of adequate, safe public transport system adds to the problems of the common man. The worst hit are two-wheeler users,” said Jatin Gandhi from Janakpuri who uses his bike to come to Connaught Place and works as a marketing executive.

Rates of diesel, LPG and kerosene left untouched

The UPA-II, celebrating three years in office, gave the “common man” a gift on Wednesday: the steepest- ever increase of Rs. 7.54 in petrol prices. The increase is the first in the past six months. Petrol price in Delhi was increased by Rs. 7.54 a litre to Rs. 73.18 with effect from midnight Wednesday, the state-owned oil marketing companies said in separate, but identical, statements.

With petrol prices hiked again today and fears remaining about price volatility of the deregulated fuel, auto manufacturers in the country are expecting a jump in demand for diesel-driven passenger vehicles.

Oil marketing companies, reeling under huge losses due to high crude price in the international market and the rupee depreciation, raised petrol prices today by Rs 7.50. But diesel prices, which are still regulated, were left untouched.