Planning to buy a car? Seeing petrol prices head northwards, chances are high you would have changed your mind and now intend to buy a diesel-powered vehicle. That might be a smart move given the government’s reluctance to tinker with diesel prices in the face of stiff opposition. But there are plans afoot to deter you.
After considering raising diesel prices at one point, the government is now mulling a proposal of higher duty on diesel vehicles and even thinking of increasing diesel prices only for cars and sports utility vehicles (SUVs) — something that has been debated earlier.
The aim of these alternate proposals is simple — to reduce the consumption of diesel in India which would ease the strain on the government’s finances, and stop wealthy SUV owners from reaping the benefits of state subsidies.
But even if implemented, it is not easy to solve the core issues using these solutions.
Automobile manufacturers had successfully lobbied against an 80,000-rupee duty hike on diesel vehicles in 2010. Finance Minister Pranab Mukherjee is currently studying the new proposal of higher duty on diesel vehicles.