ibnlive » Business

Jun 06, 2012 at 04:54pm IST

Excise hike on diesel cars not right: Auto firms

New Delhi: Unable to bite the bullet on diesel subsidies, the Finance Ministry is now looking to raise excise duty on diesel vehicles. Representatives of the auto companies on Wednesday met Finance Ministry officials to discuss the possible excise hike on diesel cars.

The auto companies representatives also discussed the widening gap in petrol and diesel prices.

According to the companies, the difference is unsustainable.

Speaking about the possible move, Mahindra and Mahindra president, Pawan Goenka, said that it was not right to put tax on the diesel vehicles.

He said, "It is not right to put tax on diesel vehicles. The widening gap between the fuel prices of fuel and petrol is not sustainable and we need to reduce the gap. Therefore, we have always supported that the diesel fuel prices should go in tandem with the petrol fuel prices as they go up, but not to have a tax on diesel vehicles."