Lobbying against dieselisation is gaining momentum with the losses incurred by oil marketing companies (OMCs) mounting day by day. Strangely enough, while petrol prices are being raised at regular intervals ñ 8-10 times since February 2010 ñ diesel prices have been revised upward just on two occasions, by Rs. 3 per litre in July last and by Rs. 2 in June 2010. This is precisely the reason why there is a distinct shift in demand for diesel vehicles, despite their being comparatively costlier than petrol vehicles. Official figures reveal that unlike in the past, diesel growth during April-November 2011 has been 7.4 per cent as against the petrol growth of 4.3 per cent. Much worse, diesel growth in November last alone was a hefty 16 per cent against a negative growth of 2.4 per cent in petrol. This perhaps must have prompted the Centre to decide, in principle, to deregulate diesel prices, with its implication of a cut in diesel subsidy.
On its part, the Petroleum and Natural Gas Ministry has for the first time proposed an additional excise duty of Rs. 80,000 on diesel-driven cars in the forthcoming Budget, besides seeking a five per cent import duty exemption for energy and natural gas. Hopefully, the proposed levy will not only discourage dieselisation of the economy but will yield additional revenue for meeting the under-recoveries of OMCs as well as for investment on road infrastructure development. Another positive suggestion made to discourage purchase of diesel cars is that, while the excise on petrol-driven vehicles with ex-factory prices of above Rs. 5 lakhs may be raised from 10 to 12 per cent, that on diesel vehicles may be hiked to 30 per cent. This will enable car manufacturers to concentrate on, and to compete in the production of economy cars.
Periodic fuel price hikes and problems therefrom facing vehicle users, particularly the general resentment among truckers, will continue baffling the Government since 84 per cent of the countryís crude oil requirements are imported at heavy cost. The world crude price which ruled at around $75 per barrel in June 2010 shot to $110 the next year and is now hovering around this rate, though with minor fluctuations now and then. A fuel strategy for the future based purely on alternate sources like natural gas for vehicles, LPG, CNG, etc., is the right solution for the problem. It guarantees least vehicular emission too. Of particular significance in this context is that, in keeping with the world trend, the Indian Government has undertaken a special national hybrid / electric mobility study that provides a fact-base towards formulation of a viable mobility. The study stress is on hybrid electric vehicles having both an IC engine and a battery-powered electric drive.