Diesel Cars might become outdated while buying a car in India, and people have two options: buy a cheaper petrol car than a diesel car but whose running costs are higher since petrol is costlier than Diesel.
Or they could also invest in a diesel car that is initially more expensive than a petrol car but whose running costs are cheaper because of Diesel.
Many people choose the second option of buying a diesel car even though it is expensive, for the simple fact that it is easier to run a diesel car because of the prices of Diesel.
Diesel is way more affordable than the costs of petrol. However, this trend might be changing as car manufacturers have announced that they see no reason to manufacture diesel cars.
What happened? How did we get here?
A couple of reasons,
Reason number 1 – The price difference between Diesel. Diesel and petrol have significantly reduced. It used to be the case that Diesel. Diesel was way cheaper than petrol because Diesel’s simple fact is more comfortable to refine from crude oil than gasoline.
Because Diesel being affordable, it is used across the board. It is used in industries, farmlands, generators, and trucks. For the longest time, the government made sure that the price of Diesel. Diesel didn’t spiral out of control so that it remained affordable for various sectors. However, all of this changed in 2014 when the government decided to deregulate the prices of Diesel.
The taxes on Diesel
Diesel increased, and this resulted in a lower price difference between petrol and Diesel. As of 2020, the price difference between gasoline and Diesel. Diesel is only 7 Rupees, which means that petrol is only 7 Rupees costlier than Diesel. So it would make no sense to buy a diesel car to get a slight advantage of 7 Rupees. Imagine the case of a person purchasing a Diesel Car. “Hey, I’m going to buy a diesel car, and it will help me in the long run,” “How would it help you in the long run?” “I’ll save 7 Rupees on fuel” didn’t make sense.
Another factor is why manufacturers see no reason to manufacture Diesel Vehicles, which has to do with pollution levels. To understand this, we must know that air pollution levels have increased significantly over the past few years because of vehicular emissions.
To curb these toxic pollution levels, The Govt has been enforcing stringent regulations on vehicles’ emissions. Let me break this down for you. The current standard that is used to regulate Emissions is called the Bharat Stage Emission Standards.
Several stages to this standard have been enforced in the past, such as Bharat Stage I, II, III, IV.
Each step is an improvement over the previous location and comes with much stringent emission norms. Until now, all vehicles had to conform to the Bharat Stage-IV standard, known as the BS Stage IV standard.
However, earlier this year, to address India’s ecology threat, the government decided to enforce a higher standard known as the Bharat Stage VI.
Let me make that point again. We went from Bharat Stage IV standard to BS Stage VI standard. We even skipped the BS Stage V. The supreme court went a step further and decided to ban the sale of BS-IV vehicles, which means that all cars manufactured from the year 2020 had to conform to the BS-VI standard.
Here’s the connection between these standards and diesel cars’ prices – Manufacturing a diesel engine that works to BS-VI standards is costly. Maruti Suzuki’s Chairman has even mentioned that manufacturing a diesel engine that conforms to the BS-VI standards would increase the price of the diesel car by Rupees 2.5 lakhs.
So, in a nutshell, you would be spending more money on a vehicle that requires relatively higher running costs than before because of Diesel’s price. Diesel has increased. So unless you are planning to clock more than 25,000 km per year or you’re driving a taxi, you’ll probably never need to buy a diesel car.