Rising Fuel costs affects used-car market
The recent speculation of hike in fuel prices has affected the used car market. The fuel price may rise upto 10Rs Petrol and 5Rs Diesel. Since the last fuel price hike in January, small time used-car dealers have had to offer discounts on their best selling small A segment cars for which the customers are the price-sensitive middle class, first-time buyers. As fuel prices go up, customers would want to spend less on something else. The Used car dealers reports a slump only in the prices of its petrol vehicles, The reason probably being that diesel vehicles are more of utility vehicles, and hence, inescapable
But the fuel price hike seems to be inevitable. Indian oil marketing companies report losses of Rs 300 crore every day by selling fuel at below cost, even as the price of crude oil has risen from $100 per barrel to $133 per barrel in four months.
Leave a comment »