Recent rise in petrol prices further widened gap between petrol, diesel: Centre for Science and Environment

NEW DELHI: The recent surge in petrol prices has lead to the further widening of the gap between petrol and diesel, said the national capital-based green pressure group Centre for Science and Environment (CSE). CSE stated that Centre is not looking into the strong public health effects of dieselisation in the Indian cities, energy effects of moving towards bigger diesel cars and SUVs along with the revenue losses due to the subsidy of rich car owners.

CSE further stated that presently, diesel cars account for 50% of the overall new car sales in the country. In the compact car segment, which has been found to be numerous and popular, diesel cars make up 70-75% of all car sales.

According to a statement from CSE, “The government is ignoring the severe public health impacts of dieselisation in Indian cities; the energy impacts of the steady shift towards bigger diesel cars and SUVs; and crippling revenue losses on account of subsidy of rich car owners," said press release by CSE.”
It was also informed that the cheap diesel is negatively impacting the public health. It also incites more motorisation and congestion, said CSE.

"It is a threat to energy security as well. Cheap diesel is pushing the market towards bigger cars and SUVs that guzzle more fuels, and undermines fuel efficiency advantages of small cars. In 2011, the SUV segment registered a 41 per cent growth – a trend that is all set to explode."

CSE said fuel tax differential has always been officially justified in the name of agriculture and freight.

Reports claim that Centre is projected to have lost nearly to Rs 8 billion in fuel excise. This week India has witnessed the steepest price hike in petrol prices by Rs 7.50 per litre.