What goes up, must come down according to Newton’s Law, but fuel prices and inflation in general don’t conform to that. However, here’s a bit of relief. Petrol prices in India will be cut by Rs. 3 per litre from May 1, 2013, the highest cut in prices in five years.
The cut in petrol prices comes on the back of a drop in international crude oil prices, and as petrol is a deregulated fuel it follows market price trends. Diesel prices, however, are still highly subsidised in India and won’t be cut. In fact, diesel prices have been steadily climbing since the budget by about Rs. 50 paisa every fortnight to a month.
International oil prices have apparently dropped from $116 a barrel to $107 a barrel in the past fortnight and the rupee has strengthened against the US dollar as well. Also read: How to get maximum mileage from your petrol car
Longer payback time for diesel cars
What does this drop in petrol prices mean to you, if you were planning to buy a diesel car? Given that the difference in price between an equivalent petrol and diesel car is between Rs. 1 lakh to Rs. 1.5 lakh, the time it would take to make up that cost difference by driving a diesel car will now increase, when compared to an equivalent petrol car, because the running costs for a petrol car come down by Rs. 3 for every litre of fuel consumed. This means if your car gave you a fuel efficiency of 10 kmpl, it would now cost you Rs. 6.30 per km as against Rs. 6.60 earlier – a saving of about 30 paisa a kilometre on fuel cost alone. Also read: How to get maximum mileage from your diesel car
Petrol price history
(New Delhi prices)
Diesel price history
(New Delhi prices)
If you drive a petrol car enjoy the lower fuel prices while it lasts. If you were planning to buy a car and were looking at choosing between a diesel car and a petrol car, weigh your options, because diesel prices are set to rise, while petrol prices could go any which way. The thing is if fuel prices were equal a diesel car would still give you about 25% more mileage than a petrol car – so work out the math and see by when that better fuel efficiency would really result in savings on driving a diesel car. Also read: Why diesel cars give more mileage than petrol cars
Also check out our Diesel Decider tool!