Updated on 17th March 2012:
After the sharp petrol price increases in past two years, the balance between petrol and diesel car sales have tuned upside down. Most small car buyers are looking for affordable diesel cars to keep the running costs low. There is a huge difference in priding of Petrol and Diesel in India. Also read – Why Petrol Prices Are So High in India?. The huge demand for diesel cars and subsequently higher demand for diesel fuel in India is putting burden on Govt. of India in form the subsidy it gives for the Diesel. This has led to an alarming situation for the Govt. as they need to discourage the sales of Diesel cars by any means to discourage the use of diesel in passenger cars. Delhi state government already imposed additional registration tax on Diesel cars in Delhi because of environmental reasons.
image – Diesel Engine
There is already a difference in price of about Rs. 70,000 to Rs. 1,00,000 between the petrol and diesel engine cars as the diesel cars are costlier because of the complexity and strength of components needed for a diesel engine. However, with the Govt. deciding on putting additional taxes and duties on the diesel passenger cars and other diesel vehicles in India, this price difference can further increased by as much as 10% to 20% of the cost of the diesel car.
Approximately, this means, for a car which costs Rs. 4 Lakhs for Petrol variant and Rs. 4.8 Lakhs for Diesel variant will cost about 5.5 Lakhs (estimated 15% special taxes on Diesel cars). This makes a whooping difference of 1.5 lakhs which is about 38% higher than the cost of a small petrol car of Rs. 4 Lakhs. This initial price difference would encourage car owner to opt for more petrol cars and less diesel cars. We are keeping an eye on the updates, we will bring you all the latest happening on this as the information arrives. You can stay tuned to us by liking our official Facebook Page and signing up for our free email newsletter.
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