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Potential diesel fuel price hike in India seen to affect investment in auto industry

The possibility that diesel fuel price will be raised by Rs10 (US$0.18) per liter in the next 10 months increases the apprehension in the auto industry which continues to see an intensified demand for a clear fuel policy.
The Rs10 (US$0.18) per liter increase means that the price gap between petrol and diesel fuel, currently at Rs20 (US$0.36), would be reduced to a mere Rs10 (US$0.18) per liter, a negligible amount considering the discounts and other benefits that support petrol car sales. Since the Rs5 (US$0.09) increase in diesel oil prices last September, diesel car sales have shown a decline. (December 28, 2012)