Posted by manishbajaj
Saurabh,
Its advisable to go for a diesel only if your running is 1000kms in a month.
As a thumb rule, we have been talking about 1000Km /month as the criteria for the decision between petrol and diesel engine. But looking at the way the petrol prices are going up, I am getting a feeling that we need to relook at this figure.
As of today fuel cost differential between petrol and diesel per Km is Rs.2 to 2.5. But some predict (don’t know about the reliability of the prediction, though) that petrol price will touch or cross Rs. 100 within two years, with only marginal increase in diesel price. If that happens, then the price differential between diesel and petrol will be more than Rs.4 per Km.
(This can be verified by taking Rs.55 per litre for diesel and Rs.100 per litre for petrol and an average mileage of 14 Km per litre for petrol and 18Km per litre for diesel. Things will be much worse for petrol for city traffic with 12 Km per litre for petrol and 16 Km per litre for diesel.)
Assuming minimum Rs.4 differential per Km, for 1000 Km monthly running, the annual savings for diesel will be minimum Rs.4x1000x12 = Rs.48000. We can easily recover the extra cost of diesel engine in less than two years time (after the increase in petrol price), and in any case with this price trend of petrol, diesel cars are likely to have better resale value also. Looking at the soaring petrol price, I personally feel that we can seriously look at diesel cars if the running is above 600 - 700Km per month, unless the smoothness of petrol engines is a major decision factor.
Tomy
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