Government to put check on diesel cars

According to latest report in Indian Automobile Industry, the petroleum ministry is concerned over the sudden amplification in sales of SUVs and diesel cars in India, which in-turn lowering the profit figures of the oil companies. It is worth mentioning that diesel prices has been kept lower so that it can be used by farmers in the farm sector and for fuelling public transport. As for now, Indian oil companies are at a loss of Rs 18 per litre on diesel sales, which is lower in price compared to petrol. According to sources, the petroleum ministry along with public sector oil companies is in process of executing procedures to carry out an all-India study of the segment-wise sales of diesel in cars, buses, trucks and SUVs in India.

As per official reports, it is said that government will conduct the survey for over a year with different figures for each quarter. This step will show the changes taking place with the change in season. For e.g. diesel prices stay down during most time of the year and shoots high during the sowing season. According to the relevant sources, currently no information regarding the car segment-wise sale of diesel is available and therefore, government is not in situation of drafting norms which can assist in checking the losses sustained by oil companies on diesel sales to the non-priority sectors.

Indian Oil Corporation (IOC) official said that according to the policy, if government finds that at some filling stations the diesel is only sold to cars, SUVs, power generating sets and there are no farms in the area, government can increase the diesel prices on those pumps. But since executing a dual policy is not easy as it will start the black marketing of diesel with the fuel being diverted from cheaper filling stations. Report states that Indian oil companies earlier tried selling only expensive branded diesel at specific filling stations in Delhi but the measures were stopped due to strong protests.