The Hindu Business Line : Diesel vs petrol

Statistics have established the rising popularity of diesel cars. This is also evident from the increase in sales of diesel variant types and the dieselisation of new models by leading companies. Diesel constitutes 45 per cent of total oil consumption; and its price has been kept cheaper than petrol by nearly 30 per cent keeping in view the important service this fuel renders for public transport, irrigation, rural energy resources, etc.

Increased diesel consumption by car users, switching over from petrol to diesel to gain economic benefits, will result in a larger subsidy outgo from the government.

This calls for need to raise diesel price to that of level of petrol to cut down on increased subsidy on account of car-riders who are far above the middle-class category.

C. R. Bhattacharjee Kolkata

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