increase demand for diesel cars - will lead where?

Govt is thinking about two options -

1 - Increase Excise duty on all diesel cars thereby nullify the subsidy on diesel .

2 - Dual policy for diesel pricing . Subsidy for mass transportation ( buses , trucks & others which have direct  bearing on economy ) & deregulated price for private diesel cars.

     But it will not be easy to regulate this sort of dual pricing as distribution will create lots of problems

Right now first option seems more viable .

Private diesel cars consume 15% of total diesel consumption right now but it will likely to increase .

Since 2004 both petrol & diesel prices have been incresed by more than 70% !!!.

Major problem is gas & kerosene subsidy . Even CNG will be treading around Rs 48-50 range in near future .

its difficult to maintain dual prices when corruption is rampat in country like India.Dual prices will only increase it. If government cant increase diesel prices then it should increase duty on diesel cars to compensate and reduce the differential.But in India once duty increased to compensated its never rolled back when issue is resolved like toll chares in mumbai is the best example.

Ashish,

As Varinder said, dual pricing will lead us to Kerosens way i.e. hording and blackmarketing. 

Looking at our ever balooning population and increase in number of cars/1000 population, we  are staring at catastroph in terms of urban air quality, emission of GHG's, SO2, SPMs. 

Let me put things in perspective, US population is 350 millions, Indian Pop. 1270 millions, US total geographical area is 2.75 times of ours, this results in even thining out of effect of pullution though per capita emissions are 20 times higher than India but density ratio of 12 will lead us to a alarming situation.

Well things gloomy, isn't it?

Yes but there is a way forward.

1. Strengthen public transportation options which are comofrtable, reliable, safe and fast with multi model transit system with plenty of exchange points.

2. Promote culture of last minute walk.

Example: So far we have only Delhi Metro which is expanding fast with ever increasing geographical coverage. 

To me solution doesn't lie in private transportation. Currently we are following US foot steps, unfortunately though. In US car cost equal to 3-4 month salary where as in India it cost equal to 1 years salary. 

In the next budget Govt will propose to levy  Rs 85000 /- on all diesel cars  ( TV News ). It is still not sure how it will be levied for small to big SUV . But if it will be implimented then surely sales of diesel cars will be seriously affected . Not only sales of diesel cars but future of TATA , Fiat , VW & others whose major sales come from diesel cars .  

Vary true Brandoo this may be the solution.But the problem is implementation in India where things go downwards with passing time especially incase of infrastructure.Take Bombay which is suppose to be financial capital of India the infrastructure is in shambles here.rampant corruption in the most corrupt Muncipal Corporation in India.

Buddy Delhi scores little better than many cities by the virtue of being national capital.

as everyone accepts that it is the bigger and costly SUV's which are also GAS GUZZLERS that must be taxed higher.

the reasons are:

1) when they can pay such high price for their SUV, they can also pay up a little extra for their fuel.

2) as the owners are capable of paying for full price of diesel, shey should not enjoy subsidised diesel of the poor farmer, fisherman or the trucker or any public transport.

3) IMO PDS can be done to deliver the Subsidised diesel to the farmer and fisherman.

4) like domestic LPG card Smartcard must be used with each vehicle consuming diesel so as to monitor their consumption.

this can be used while filling at the petrol station.

those without these shall be charged the decontroled price.