Crude oil crisis to unleash a price hike in petrol and diesel in India

Now it's the turn of the common man who dreams of owning a vehicle take a serious re-look.

In a press meet, Petroleum Secretary M S Srinivasan informed that with the surge in crude oil prices which have touched US$ 135 per barrel the situation had become alarming and to stem the rot from the beginning, the ministry was now seeking a hike of Rs 10 per litre in petrol and Rs 5 a litre in diesel prices. The cabinet is expected to take a final decision in the next 2/3 days to lower the projected Rs 2,00,000 crore under-realisation on sale of petrol, diesel, LPG and kerosene.

What becomes of the auto companies who already reeling under the input costs have been forced to announce price hikes of their models? Would that lead to a glut in the auto market sales? Time only will tell.