"No Economic Argument" Against Increasing Indian Diesel Prices, Says Dr. Kirit Parikh Hours Before Key Cabinet Meeting

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"No Economic Argument" Against Increasing Indian Diesel Prices, Says Dr. Kirit Parikh Hours Before Key Cabinet Meeting

PR Newswire LONDON, September 13, 2012

LONDON,September 13, 2012/PRNewswire/ -- Chairman of the Indian National Low-Carbon Growth Strategy Group Dr. Kirit Parikh said that there is "no economic argument" against increasing diesel prices. Speakingat the Diesel Emissions Conference India 2012, ahead of an Indian Government cabinet meeting addressing fuel subsidies, Dr. Parikh said he is hopeful of policy change after successive delays in addressing the issue. Dr. Parikh argued fuel price controls will cause inflation to be 3% higher over the next three years if left unaddressed and are holding back economic growth considerably. Inflationcould be 6-8% lower within four quarters if price controls were removed, he said. Historically, changes toIndia'spolicy have been held back due to the political fears of the government and concerns that resulting price rises would have a large negative impact onIndia'spoorest communities. Addressing over 200 leaders ofIndia'stransportation and vehicle manufacturing industry, Dr. Parikh reported that the impact of such changes would be limited to2-2.5 rupeesper month per person for poorer communities. In contrast, the richer 10% of the population would pay15 rupeesper person per month more.In addition, reform would lift the weight of200,000 crore Rupees of losses made per year by the Indian oil industry and could make it more competitive by allowing foreign competitors to enter the market. Dr. Parikh also suggested a broad approach to tacklingIndia'surban air quality problem: "Pricing is only part of the problem," he said. "You cannot address this problem piecemeal." He called for measures such as congestion charging, parking charges and reserved bus lanes in Indian cities, saying that these measures would go a long way to improving living standards in urban areas. Mr. Nitin Gokarn was speaking at Integer Research's 3rd Diesel Emissions th th Conference India, taking place at the Hilton New Delhi from 12- 14 September. Theconference has attracted over 200 delegates from across the automotive industry, including OEMs, policy makers, manufacturers and suppliers to discuss developments in diesel emissions. --------------

About Diesel Emissions Conference India 2012

Integer's 3rd Diesel Emissions Conference India is the region's leading independent diesel emissions event for the automotive industry. Over 200 key stakeholders from bothIndiaand globally will gather to investigate the challenges and opportunities in meeting Bharat Stage IV legislation for on- and non-road vehicles, and evaluate the latest emissions reduction and fuel economy technologies. The conference is now the foremost networking platform for the automotive

industry inIndiaand for those seeking to do business in the country. It is the ideal forum to discuss industry developments and trends, share ideas and review business strategy in this growing market. http://www.integer-research.com/conferences/dec-india/

About Integer

Integer is a specialist provider of research, data, analysis and consultancy services across a growing range of global commodities markets. Its services are used by a range of clients world-wide, from commodity producers, financial institutions and shippers, to plant contractors, trading companies, government agencies and trade associations. Clients are served with a variety of information services: bespoke research commissioned by individual clients; subscription products that enable benchmarking and competitor analysis, and assist in investor relations; tailored reports covering producers, distributors and traders; and annual industry events. http://www.integer-research.com