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

Passenger cars, SUVs consume 13 percent 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 dieselThe 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)


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Sagar Patel

Sagar Patel

A first drive in a manual rickety old van was enough to pave the road forward for Sagar Patel. When not driving or riding, his dexterity shifts gear to voice passion through words via reviews, and news, all the while, closely monitoring updates from the auto industry.

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