American automaker General Motors (GM) has proposed a Re 1 per liter hike on diesel price in India as opposed to levying a 5 percent tax on diesel powered cars. The company has proposed the hike with the notion that it would generate more revenue than the additional tax on diesel cars. It is also of the opinion that the hike would also give rest to the market distortion due to the wide gap between the prices of diesel and petrol.
According to Mr. P Balendran Corporate Communications Vice President GM India, other car manufacturers are also of the opinion that diesel price should be increased gradually while the petrol price should be decreased to neutralize the market distortion.
He added that the Society of Indian Automobile Manufacturers (SIAM) recommends the diesel price hike which would also help the government earn a revenue amount of Rs 6,000 crore.
