Fuel Diesel SUVs at the Expense of Rs 32 per day BPL !

 Artificial Low Diesel Price

The demand for Petrol is reported to have dropped below Diesel for the first time in 15 years, as high cost of Petrol is prompting more and more people to opt for Diesel Cars to take advantage of the Rs 26 a liter gap between the prices of the two fuels. The people are opting for diesel cars, in spite of Rs 1 to 1.5 Lakh premiums on diesel cars, since this is more than made up, by the lower price of diesel, during the life cycle of the vehicle. Even automakers who never made diesel passenger cars are now launching such vehicles in India,

 Misuse of Subsidized Diesel

As against only one out of 10 vehicles running on diesel some years ago, and  less than one in four in 2005-06, the share of diesel vehicles is reported to have  risen to nearly half of car sales now. As a result, the subsidized diesel consumption by private vehicles - "Passenger Cars and SUVs"-is reported to have exceeded consumption by the Public Transport and Agricultural Sectors, for which the subsidized Diesel is basically meant. This is further aggravated by th Captive Diesel- Generator sets of Industry, the Standby D-G sets of Commercial & Domestic Sectors, the Mobile Cell Towers and the Construction Sites.

For Who's Benefit & At Who's Cost?

The government deregulated petrol price in June 2010 but continues to keep Diesel price artificially low due to lower taxes. The present lopsided fuel pricing policy & system is increasing manufacturers' and buyers' bias in favour of diesel vehicles, benefiting the Auto Makers and well to do Owners of SUVs & Expensive Diesel Cars. It is a huge avoidable drain on the State Exchequer, burdening heavily the average Taxpayer and the Rs 32 per day BPL Population.

Remains Questionable?

It remains questionable, why UPA Government headed by Dr.Manmohan Singh, the world's well known Economist, does not act on the recommendations of the Expert Group on a Viable &Sustainable System of Pricing of Petroleum Products, submitted as far back as February 2010?

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