Passenger cars, SUVs consume 13% of India’s subsidized diesel

Diesel prices are regulated in India, with Govt. subsidy running at Rs 8.47 per liter. A recent study conducted by Nielsen for the Govt of India – Petroleum Planning and Analysis Cell, revealed that private cars, which come under the category of unintended beneficiaries, are actually using a major portion of subsidized diesel.

A study into the indiscriminate use of diesel found that private cars and SUVs consumed 13.15% of diesel out of a total of 69.08 million tonnes of diesel consumed in India over the 2012-13 period. Commercial vehicles ranked next with 8.94% diesel consumption while three wheelers used an additional 6.39% of subsidized diesel.

Passenger cars, SUVs consume 13 percent of India's subsidized diesel

The study concluded that 70% of diesel was being used by the transport sector with Agricultural tractors and pumps using just 13% of the diesel. Conversely, industries and electrical generators consumed 9% diesel while mobile towers used up 1.54%.

Talking of petrol consumption, it was found that 99.6% of petrol is being consumed by transport sector alone. Government of India deregulated petrol prices some time back, but diesel is still sold at a regulated price, mainly due to it’s importance in transport sector.

Indian Govt total subsidy for diesel during 2012/13 stood at Rs 92,061 crores. Of this, Rs 12,100 crores was for the benefit of private car/SUV owners, Rs 8,200 crores for small commercial vehicles/cars/SUVs, Rs 26,000 crores for trucks, Rs 8,800 crores for buses, Rs 12,000 crores for agriculture sector, and remaining to other sectors. (via)