Today may be a really bad day for Diesel car owners as the cost of running as well as car Insurance costs will be costing more for Diesel car owners. Today, en Empowered Group of Ministers (eGOM) from Government of India have taken a decision to increase the prices of Diesel by Rs. 3 per litre. There is a parallel cut in custom and excise duty on the petroleum products to further reduce the losses of petroleum companies. This increase will not only increase running cost for the diesel cars, but will have a even deeper impact on the prices of commodities and other products as most of the transport systems in India depend heavily on trucks which run on Diesel.
Diesel Cost Insurance To Cost Up To 30% More Compared To Petrol Cars In India !
Diesel is not the only bad news, another bad news for Diesel car owners in India is that Insurance cost of the Diesel cars may soon increase by as much as 30% compared to the petrol cars. The recent increase in petrol prices in India has created more demand of Diesel cars and Insurance companies have a view that Diesel cars are usually driven longer distances compared to Petrol cars because of the economic advantage on a Diesel car over a petrol car. This gives Diesel cars to be more on road and drive longer posing more risk. As the risk increases on any object, the cost of Insurance is also usually higher, so the Insurance companies are going to charge more for Insurance of Diesel cars.
This will increase the initial cost of the diesel cars even more resulting in somewhat drop in the demand of the Diesel cars in a longer run. Lets see how the turn of event alter the sales of cars in the near future. Stay tuned for updates from Car Blog India by liking our official Facebook Page or you can also sign up for our free email newsletter.