There are some concerns for Those driving swanky SUVs – they may have to pay more for fuel if the government has its way.
Finance Minister Pranab Mukherjee is planning to do away with diesel subsidy for passenger cars though there are some concerns over how that can be implemented.
Expensive SUVs for driving pleasure and trucks carrying essential items, both get an equal fuel subsidy. But that is set to change. The government plans to remove the subsidy on diesel for passenger cars.
Out of every 100 litres of diesel, the single largest consumption is passenger cars – 15 litres.
“15 per cent of passenger cars used diesel where we can accept your suggestion and try to work out what mechanism could be found out so that these section are not subsidised. 15 per cent of 100 million ton if we import we will get some relief,” said Finance Minister Pranab Mukherjee.
The goverment subsidises Rs 6, 82 paise on every litre of diesel costing the exchequer RS 52,000 crores every year.
So should the consumer pay the full price? Most don’t think so.
“We are paying more already,” said a consumer. “We are paying more in the price of the car. So it’s justified,” said another.
Some call the subsidy unfair.
The government is also considering hiking excise duty on diesel passenger cars by Rs 20 to 70 thousand.
While fuel price hike pinches everybody, so far it has been one sided race with diesel car owners taking the prize. If the government goes for a diesel price hike, at least everybody will be on the same gear.