[mukeshgoel]

The Supreme Court on Friday directed the Centre to apprise it as to whether petrol and diesel can have an equal pricing for four wheelers and private cars after the Environment Pollution Control Authority (EPCA) said pollution from diesel vehicles was a cause of concern.

A bench of justices Madan B Lokur and Deepak Gupta suggested that the government could contemplate fixing price of diesel and petrol on par for four wheelers, other than goods vehicles.

https://m.timesofindia.com/india/can...w/64979673.cms

Mods: Please merge/delete if a thread on this topic already exists.

[84.monsoon]

The problem with many of these pronouncements is the lack of appreciation of economics. The following courses should be made mandatory in law schools:

• Microeconomics
• Macroeconomics
• Externality Theory
• Econometrics
• Developmental Economics
• Industrial Economics (Agriculture, Energy, Banking etc)

[wildsdi5530]

Funnily most people I know buy a diesel car for the range and cruise rather that the cost. An average petrol car delivers about 10-12 kmpl. most diesel cars deliver 16-20kmpl. Thus the range is almost doubled (350 kms vs 700kms). Plus when cruising at 100-110kmph, the diesel is ticking over at 1800 rpm, the petrol is at 3500 rpm (I'm speaking in general and not the large engines or the turbos). If diesel is costed at 3 times the rate of petrol, probably enough people would shift to petrol, but commercial vehicles and railways will take a big hit.
One thing I don't understand is the wording suggesting that only private vehicles be charged more and not goods and commercial vehicles. A service provider will just make the customer pay. A transporter will just make the bills higher, railways will just increase ticket rates, taxi fares will go up. But the only persons affected are the consumers who also have to contend with the added hike in fuel prices. Is the aam admi always the bakra??

[sandeepmdas]

Originally Posted by 84.monsoon

The problem with many of these pronouncements is the lack of appreciation of economics.

For a start, let them change B.A. Economics to B.Sc. Economics. Economics is a science and not an "art" like BA Litt. or MA Karnatic music. It has rules that must be adhered and are not meant to be broken and remoulded, as legends do in artistic or literature forms.

No offences, please...I am also a big fan of classical music.

[sgiitk]

Excellent idea. Make the taxation the same. Leave the rest to Market Forces. In any case with the differential narrowing and also the 10 year v 15 year life this is but a natural.

[bigman]

Will just create an opportunity for transporters to make money by selling their lower cost diesel on the side. Same happens in the UK with red diesel which is designated for agricultural use only.

[mayuresh]

Implementation on the basis of vehicle type (private vs public or 2 wheeler vs 4 wheeler) is simply impossible. It would just give rise to black marketing and achieve nothing significant.

[n.devdath]

Originally Posted by mukeshgoel

A bench of justices Madan B Lokur and Deepak Gupta suggested that the government could contemplate fixing price of diesel and petrol on par for four wheelers, other than goods vehicles.

This is something that I dont see happening in the near future because:

1. Taxi unions will be up in arms if all their cabs were to run using personal vehicle expensive diesel.
2. People who buy commercial diesel will sell it illegally to others thereby increasing nefarious business.
3. There is no clarity about the diesel meant for other applications like tractors and generators, which will further augment illegal trade.
4. Fuel pumps will need to have a completely different level of surveillance and dispensing mechanisms, not happening here that easily.

What we need is a sensible pollution agency/board/ministry AND a emission based road tax, fitness renewal and insurance system for all vehicles coupled with the reduction in the insane taxes on fuel.

[giri1.8]

I think it's a great idea, would benefit us all if they reduce the petrol price to the level of diesel, by reducing taxes

[anish5225]

Originally Posted by giri1.8

I think it's a great idea, would benefit us all if they reduce the petrol price to the level of diesel, by reducing taxes

C'mon this is India. Expect tax on diesel to go up so diesel price match that of petrol.

[avishar]

Think of the auto companies for once. With policy that keeps on changing with every season, how are they supposed to create long-term strategy and commit towards investment? Auto CEOs probably chocked on their muesli reading his today. If petrol and diesel prices are kept the same for four-wheelers, it changes the market forces and the dynamics. First off, the premium for diesel cars will drastically reduce. This is going to upset some apple-carts for sure!

[typlo]

This move is honestly, quite stupid. The fuel prices are already on their way up and no matter what, people WILL afford the fuel they need to buy to commute to home/office/anywhere else.

I wanted to keep politics out of this, but the government already charges unfair taxes on a large number of items. Why not bring fuel under GST? Wasn't this the point of GST? They won't because petroleum products are literally black gold.

The solution to this is to reduce petrol prices, everything is relative. A large number of people already prefer to drive petrols but soaring prices dissuade them and force them to use a dirtier fuel (diesel). Why not accelerate the development of EVs in India? Exactly! The government has nothing to gain from progress.

[PGA]

I think that's a brilliant idea, I have got a tractor at my farm, just fill and don't shut it, my car will automatically run on cheaper diesel, I know it will but how, I don't know.

It certainly looks more promising proposition than trying to grow veges battling those aphids, whiteflies and ever changing weather.

I always wonder why can't our Govts simply be a little more thoughtful with their money, the way common tax paying individual is, so that they do not have to apply these out of the box solutions.

If Italian PM can come to office in a taxi and Croatian President can travel to Moscow in economy class, what so special about our elected and selected bosses that they have to buy new innovas and travel with entourage of XXX number of vehicles.

BTW our elected/selected reps have the largest farms, so don't even think that they will buy common man's diesel.

[GTO]

Agreed with Mayuresh - this is impossible to implement. However, I would like to add a point. Fuel prices today in Mumbai:

Diesel: 72.69
Petrol: 84.26

The difference is 16%. It's a lot less than it used to be at one time. I remember filling our Premier 137D for 7 bucks a liter, when petrol used to cost THRICE as much. Hardly the case today, so is any intervention really required?

Furthermore, sales of diesel cars have also fallen to 1/3rd that of the overall market. Why bother, SC?

Originally Posted by wildsdi5530

Funnily most people I know buy a diesel car for the range and cruise rather that the cost.

Torque too. In all of the 3 cars I own, the diesel is undoubtedly the superior (Mahindra didn't have a petrol, but the diesel is better at offroading than the Gypsy's 1.3L).

[saket77]

In Ranchi, Diesel is 73.XX and petrol is 77.XX. A difference of less than 4 rupees! So, we are already there almost. How it helps, I don't know. Especially when diesel cars return almost twice or a little less than twice the FE that petrol cars achieve at their best. So, lots of folks with higher running are still going for diesel cars.

Firm push for EVs & related infrastructure and better public transport are the real solutions, towards which there is still a lot to be done by the Government. Better public transport would also take away quite a few vehicles off the road which shall take some care of the maddening traffic and jams; which results in further saving fuel and hence lower pollution.

Regards,
Saket.