Uniform subsidy is reason for high diesel consumption, says Minister

Our Bureau Updated - March 12, 2018 at 02:34 PM.

The share of diesel consumption in gensets/mobile towers and passenger vehicles is estimated at about 22 per cent.

This information was given by Minister of State for Petroleum and Natural Gas R.P.N. Singh to the Lok Sabha on Thursday.

Singh emphasised that in view of the uniform pricing of diesel except for local levies, subsidy on diesel is available to all sectors of consumption. This is one of the main reasons for such consumption figures.

He also said that the Ministry in its Budget proposal to the Ministry of Finance had suggested levy of additional excise duty on diesel cars. Subsequently, the Ministry has also written to the Ministry of Finance for levying additional excise duty on diesel cars, gensets and mobile towers.

The Minister said that to assess sector-wise consumption of diesel, Petroleum Planning and Analysis Cell (PPAC) in association with the public sector Oil Marketing Companies (OMCs) has commissioned an ‘All India Study on sectoral demand of diesel & petrol.’

According to the initial results for the first round of field survey of the study (based on 2011-12 diesel consumption), diesel consumption share in gensets/mobile towers and passenger vehicles (includes cars & SUVs etc.) is as follows: Passenger Vehicles (Cars, SUVs,etc) – 15.88 per cent; Power Generation (Gen sets) – 4.60 per cent; Mobile Towers – 1.93 per cent.

richa.mishra@thehindu.co.in

Published on August 23, 2012 16:57