The reasoning is that given present inflation rates it is impossible to raise prices of petrol and diesel for the normal public while the so called urban rich could easily afford a rise of Rs.5-10 per litre.Now I understand the situation of the government and the reasoning behind this decision.What I am not convinced however is that these premium fuels justify this huge premium over its less flambouyant counterpart.Unlike the ads by the fuel companies the fuel just does not make the car feel like its on steeroids neither does it drink less of the premium fuel.
The most common line of reasoning for switching over to premium fuels is that consumers feel they are less adulterated something which I have no proof of.
Although its the normal petrol that is the bestseller,the premium fuels at present do have some sort of presence on the sales charts but would this continue after a substantial price difference between the two is very doubtful.However for the sake of the poor indian oil companies lets hope indian comsumers stick to premium fuels.
Update:The goverment has decided not to hike prices for the time being.
