Diesel to cost Rs 1.50 more, CNG spared

NEW DELHI: For those owning diesel vehicles, this makes for bad news. With the Delhi government increasing sales tax by 8 per cent, diesel will cost more by Rs 1.5. The good news: CNG has been spared, hence bus, auto and taxi fares will not be affected.
The price hike will be implemented by month-end, when the budget is notified on July 29. The Delhi government''s logic behind the increase of tax on diesel is: if you pollute, then you must pay more."The number of diesel vehicles is increasing every year, thereby increasing pollution. We want to discourage that," said finance minister A K Walia.
But what the government possibly ignored is that the hike in diesel prices will lead to an overall increase in the price of essential commodities, including fruits and vegetables. "The increase in prices may vary from 2-3 per cent, since most of the transportation is diesel-based. However, some retail traders may try to mislead customers by quoting higher prices, attributing it to the diesel price hike" said APMC, Azadpur secretary A K Bisht.
That''s no solace for a Delhiite. "The effect will percolate down to effect everyone''s budget," said Pramit Chanda, a resident of Gurgaon, who drives down to Delhi for work.
"Moreover, I bought a diesel car on the assumption that they are Euro II compliant and no more polluting than a petrol vehicle," Chanda added. Many others believe that the 8 per cent hike will not discourage people from buying diesel vehicles, since the price differential between diesel and petrol remains considerable. "Three litres of petrol equal 1.5 litres of diesel. So it still makes more sense to go for diesel," Sharad Sharma, a marketing executive added.