This car is touted to be Chevrolet's next big thing in India.
The Union oil ministry is considering a proposal to adopt differential pricing for diesel, under which industrial users like power utilities, will be charged market prices and retail consumers continue to be subsidised.
In 2010, the govt had taken an "in-principle" decision to deregulate diesel prices, but could not implement it due to political pressure.
Giving a quiet burial to the decision to dismantle Administered Pricing Mechanism for petroleum products, the government on Thursday said it will control the pricing of sensitive products like LPG, kerosene and diesel.
The government is preparing a national hydrogen road map and will launch a national mission on bio-diesel next month as part of efforts to encourage use of alternate fuels, the Lok Sabha was informed on Tuesday.
Petrol price will be cheaper by 49 paise/litre and diesel by Rs 1.21.
Finance ministry officials said the issue had been raised several times before, but this time it was serious in the wake of huge differential between the two fuel options.
A top oil ministry official said it will be "suicidal" to even think of raising prices of diesel, LPG or kerosene just before Parliament is to meet.
Petrol price may be reduced by about Re 1 per litre while diesel price may be hiked by 40-50 paisa a litre from March 15/16.
Although diesel vehicles currently account for 30 per cent of the 1.2 million sold in India, the share is expected to climb to 45 per cent of the projected 2 million market by 2010.
India is now much ahead of other large railway networks in the world in terms of electrification -- with the US at just 1 per cent, China at 72 per cent and Europe at 60 per cent.
The ongoing Hamas-Israel conflict has disrupted India's efforts to gain from a recent fall in crude oil prices. Since Hamas' invasion of southern Israel on October 7, petroleum has become costlier by around $5 per barrel, threatening to stoke prices and impact growth. Brent crude was trading at $89.8 per barrel on October 9 (9.15 pm IST), up over 4 per cent, thwarting India's anticipation of a period of declining oil prices - after the leading global petroleum benchmark declined by around 11 per cent last week.
The retail selling price of petrol at Delhi would come down by Rs 1.82 a litre.
"Beat with a one-litre diesel engine will also be coming in June this year," General Motors India Vice-President P Balendran said after unveiling the LPG variant of the compact car here.
Plans to increase price progressively.
Petroleum Minister Murli Deora on Saturday said the government is considering to prices of petroleum products in the next few days.
The surge in diesel vehicle demand has prompted the companies to explore options such as developing new engines as well as buying these from other companies.
The government has partially deregulated diesel price allowing a hike of 40-50 paise a litre per month for retail customers and nearly Rs 11 for bulk consumers, a step that is feared will have a cascading effect on inflation.
The Delhi government on Monday started a process of deregistering 15-year-old diesel vehicles in the city and also imposed a ban on use of fire crackers except for religious functions, following directions from Lt Governor Najeeb Jung to bring down air pollution.
Government may impose a 25 per cent cess on big diesel cars and charge bulk users other than railways and state transport corporations Rs 22 a litre more for diesel as part of a dual fuel pricing policy.
The price reduction will be effective midnight tonight, announced Indian Oil Corp
With the rupee continuing to remain weak against the US dollar, losses on diesel have climbed to Rs 9.45 per litre, upsetting the government's subsidy maths.
"We had announced last year that the decision would be taken at an appropriate time to deregulate diesel, the government hasn't changed their decision... We have to see how the inflationary pressures go and take a decision," Revenue Secretary Sunil Mitra told reporters on the sidelines of an Assocham function.
