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    Petrol cars gain numbers over diesel for the first time in two years

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    Venkat Desirazu

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    Petrol cars gain numbers over diesel for the first time in two years

    In what is expected to be a major shift in trend for the Indian automotive industry, the numbers of petrol cars sold is higher than the number of diesel cars sold for the first time in two years. A report from the Economic Times says that the number of oil burners sold in the market for the first quarter of this fiscal is 42 per cent as compared to 54 per cent in the corresponding period last year. 

    The most obvious reason for such a shift is the reducing difference between the prices of diesel petrol. The Central Government in January had partially de regulated the price of diesel and began allowing the major oil companies to increase the price by up to 50 paise every month. This step has been implemented to align the retail prices (across the country) with international prices. 

    The report also suggests that there has been a 12.5 per cent increase in the sales of petrol cars and too at a time when the industry suffered another month of sluggish demand and consequently a drop in numbers. Further numbers indicate that the highest growth in petrol consumption (MoM) 31.2 per cent happened in May when the price difference between both fuels was just Rs 14.42. 

    Source: EconomicTimes

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