Diesel prices hiked by Rs.5; see how it will affect you!

The price of diesel has been increased by Rs. 5 from today (Friday, September 14, 2012). This decision by the government came into effect at midnight and is a 14% hike in the price of diesel including taxes.

rising fuel prices

 

The price of diesel in Delhi is now Rs. 46.95 per litre  and increase of Rs. 5.63 from its old price of Rs. 41.32 per litre (as on August 1, 2012). CarToq had earlier reported that diesel prices could go up with de-regulation on the cards.

Branded diesel prices go up by Rs. 19

The price of branded diesel has been fully de-regulated and will be sold at market rates. This means BP Hi-Speed diesel, Indian Oil’s ExtraMile and HP’s TurboJet will now cost Rs. 19 more at Rs. 59 per litre, going up to Rs. 66 per litre in some cities. Also read: Both CNG and LPG deliver savings over petrol, but which one offers more?

The price of diesel has been increased for the first time in 15 months. Although this may be a welcome change for car makers who have been struggling to keep sales of their petrol cars afloat, it is definitely not very good news for diesel car owners. And what’s even more disconcerting is that since diesel is the main fuel used in goods transport, prices of most other commodities will increase, including raw material costs for cars (due to increased transport costs), and will push up prices of cars as well in the next couple of months!

Diesel is the fuel of choice for vehicles used for public transportation as well. This will reflect directly as an increase in travel expenses of the general public. Moreover, this hike in diesel prices now narrows the gap with petrol prices and may swing some buying decisions back in favor of petrol cars depending on your daily running. Also read: Five points to consider when installing a CNG kit

How it impacts you

To put things in perspective, let’s assume that your diesel car returns a mileage of 15 kmpl and you drive 100 kms a day. Now, with the hike in diesel prices you will end up spending Rs.313 for this daily trip (at Rs. 46.95 a litre) compared to the Rs.275 you would have spent earlier (when diesel cost Rs.41.32).

So over a period of one month (assuming 25 working/driving days) you will now spend Rs.7, 825 as against the Rs. 6,875 you used to spend earlier. This means an increase of Rs. 950 in your monthly fuel bill and an increase of Rs. 11,400 annually.