Diesel prices to slash by Rs. 2!

Good news for all diesel heads in the country! Government may reduce diesel prices by an amount of Rs. 2, effective next week. Diesel was getting dearer month-on-month by 50 paise but this time its getting down and it is the first cut in the oil burner's price since January 2009. Apart from the diesel, petrol is also likely to go down by 50 paise if the current falling of international fuel prices per barrel or exchange rates continue in coming days. As Assembly Elections are around the corner, this seems to be a smart move to lure general public.

Adding more to it, pump prices are set in accordance to international diesel rates and the latter have shown continuous dip this month. Since the prices of diesel in India are growing from the last January by approximately 50 paisa per month, thus we are certainly going above the international diesel rates so most likely government will reduce the prices of diesel from next week.

Cutting diesel prices ahead of the festive season will put diesel back on track, which lately is on a constant verge of depreciating share when it comes to diesel vs petrol vehicle sales. Indeed, this week saw launching of two mid-size diesel automatics with state-of-the-art dual-clutch DSG automatic transmission – VW Vento and Skoda Rapid. Presently, diesel still holds its grace over the petrol trims among several models in the country. Segment like mid-size sedans, executive or luxury ones, diesel dominates alongwith premium hatchbacks and SUVs.