Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

NEW DELHI: Indian consumers are shifting back to petrol-run passenger vehicles that are set to start outselling diesel variants again after two years, boosted by falling petrol prices and the narrowing price gap between the two fuels. The changing demand trend amid a turnaround in the auto market is making manufacturers rework their production schedule in the run-up to the festival season when sales spike up. Diesel cars have enjoyed a smooth run for more than two years as the fuel costs less than petrol and offers better mileage, making such vehicles a preferred choice for India’s cost-conscious buyers. 
 
That is fast changing with the government phasing out diesel subsidy and petrol, which is deregulated since June 2010, getting cheaper. Diesel is nearly 14% costlier now than a year earlier, while petrol has become a bit cheaper year-over-year. The trend in the automobile market is quite pronounced on some models. 
 When <keyword id="1381889" type="COMPANY" weightage="20" keywordseo="Honda-Cars-India">Honda Cars India</keyword> launched its compact sedan Amaze in 2013, the local unit of the Japanese major found 80% of the buyers going for the diesel version. The Amaze was <keyword id="20630" type="CITY" weightage="20" keywordseo="Honda">Honda</keyword>’s first diesel offering in India and was launched to meet the then growing demand for cars that run on diesel. 
 
However, last month, just a little over half the buyers for Amaze chose a diesel variant. “Customers are now more educated over their needs and are not going blindly for diesel cars any longer,” said Jnaneshwar Sen, head for marketing and sales. Honda witnessed a similar trend for the new City, with just 50% of buyers preferring diesel in July compared with 70% at the time the mid-size sedan was launched in January this year. 
 
According to executives at car manufacturers that ET spoke to, the festival season that commences next month looks perfect for petrol cars to capture lost ground as the overall market is also on a recovery path with domestic sales recording three straight months of growth. They expect shift of customer preference for conventionally wiser petrol – maintenance cost of petrol cars is usually lower and fuel is more environment friendly – to continue, and are accordingly adjusting their strategies. 
 <keyword id="44883" type="CITY" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword>, the country’s largest carmaker, has shelved plans for a new diesel engine plant at Gurgaon and is concentrating on its petrol models as it strives for higher market share. “While diesel car sales have declined 7%, sales of petrol cars have grown by almost 11% in the past few months,” said a senior executive. “Enquiries on and sales of petrol models have jumped in recent months.” 
 
<table align="center" border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>
				</td>
		</tr>
	</tbody>
</table>
 Companies aren’t just altering production plans, but also offering petrol variants at aggressive price to tap the shift. “Customers are increasingly going towards petrol and keeping the same trend in mind, we aggressively priced the new car with the intention to increase the share in the premium hatchback segment,” said <keyword id="596" type="CITY" weightage="20" keywordseo="Hyundai">Hyundai</keyword>’s head for marketing and sales, Rakesh Srivastava. The company has invested $600 million in a hybrid engine manufacturing plant capable of producing both petrol and diesel engines on the same line to tackle shifting demand in the Indian market. 
 Overall ownership cost of diesel-fired vehicles has gone up, said Amit Kaushik, principal analyst, autos, at consultancy firm <keyword id="350927" type="ORGANIZATION" weightage="20" keywordseo="IHS-Automotive">IHS Automotive</keyword>. Car companies are vying on the government policy that is further likely to dampen demand for diesel cars. 
 
Price gap between the two fuels now stands at just Rs 12 and may further close in coming months because of government strategy of increasing diesel price by 50 paise every month until it aligns with market rates.

Petrol-Run Cars Outselling Diesel Variants In India, Thanks To Narrow Margin Between The Fuels

<keyword id="6356109" type="COMPANY" weightage="20" keywordseo="diesel">Diesel</keyword> has extended its gain over petrol in Delhi as oil marketing companies raised its price in the city by 25 paisa a litre on Tuesday after keeping auto fuel prices hanged for the last seven days. With the increase, diesel is priced at Rs 80.78 a litre in the National Capital, up from Rs 80.53 a litre on Monday. The oil companies, however, kept petrol prices unchanged across the country, resulting in diesel extending its gain in Delhi from 10 paisa earlier to 35 paisa now. Delhi is the only metro city where Diesel is priced higher than petrol and this has been maintained since June 24, when for the time ever the transportation fuel climbed up over petrol. Apart from Delhi, diesel is still cheaper than petrol by Rs 6-8 per litre in other metro cities. Diesel is priced at Rs 79.05 a litre in <keyword id="6358070" type="LOCATION" weightage="20" keywordseo="mumbai">Mumbai</keyword> that is an increase of 22 paisa over Monday's price, at Rs 77.91 a litre in <keyword id="12864" type="LOCATION" weightage="20" keywordseo="Chennai">Chennai</keyword> (19 paisa increase) and Rs 75.89 a litre in <keyword id="6354925" type="LOCATION" weightage="20" keywordseo="kolkata">Kolkata</keyword> (25 paisa increase). Officials in oil marketing companies said that diesel prices are seeing more volatility in international market so the price changes in the fuel segment has been higher. But with global oil prices also rising again and set to touch $43 a barrel, the expectation is that fuel prices may again see an uptick in coming days. Before Tuesday, Fuel prices have remained unchanged for the seven consecutive days since June 30 across the four metros. Prices of the transportation fuel have had a pause after rising to record levels in 23 of the past 31 days after the oil marketing companies (OMC) resumed the daily price revision system from June 7 that kept the petrol and diesel prices to rise incessantly till June 29. During the daily hike till June 29, diesel prices in Delhi recorded a new feat by overtaking petrol prices, making the common man feel the heat. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/markets/news/tcs-share-price-and-first-quarter-earnings-estimate/articleshow/76827257.cms" data-type="tilCustomLink">TCS shares are hot again as investors hope for a quarterly surprise</a> <a href="https://www.businessinsider.in/business/corporates/news/hul-vs-emami-a-lawyer-explains-whats-fair-and-not-in-the-battle-of-brands/articleshow/76829901.cms" data-type="tilCustomLink">HUL vs Emami — A lawyer explains what’s fair and not in the battle of brands</a>

Diesel extends gain over petrol in Delhi after 7-day pause

<ul class="summary-list"><li>On Sunday, the European Union imposes an import ban and price cap mechanism on Russian fuel products, such as diesel.</li><li>Kpler lead oil analyst Matt Smith said the sanctions likely won't change Russia's overall production volume, but could hit export revenues. </li></ul>The European Union's next round of sanctions on Russia could hit Moscow's energy revenue, but they are unlikely to weigh on overall production, Matt Smith, lead oil analyst at Kpler, told Insider.On Sunday, the EU will ban imports of Russian refined oil products, such as diesel, and impose a new price cap, adding to an <a href="https://markets.businessinsider.com/news/commodities/russia-oil-ban-eu-price-cap-western-sanctions-170-million-2023-1">embargo on seaborne Russian crude</a> that began in December.Once the new measure kicks in, Smith said one of two things will happen: diesel may be consumed in Africa or diesel exports from Africa to the EU will pick up, suggesting Russian supplies will bypass sanctions and still end up in Europe.Already, Kpler has observed an uptick in volumes heading to Africa, with nations including Senegal, Morocco, Tunisia, and Libya seeing increased imports. Smith noted that it's difficult to confirm whether countries are re-exporting Russian diesel as product origins can be muddled by mixing supplies. He expects the new sanctions will play out in a similar way that the EU's crude oil ban has, meaning Russian volumes will not see a meaningful dip as exports are rerouted from Europe to other countries."Everything we have seen over the last year tells us not to underestimate that Russia hasn't got this figured out," Smith said.Meanwhile, a price cap on Russian fuels will also be imposed. Similar to the crude oil price cap, the EU and G7 plan to bar other countries from accessing insurance and shipping services unless they abide by a cap on refined products.But Smith expects the new price cap to be a moot point, as it will likely be too high to be relevant. There are also too many different products with different prices to justify any single price cap, which will make it harder to implement than previous ceilings.In addition to diesel, Russia produces a range of other refined products, including jet fuel and fuel oil, requiring separate price caps for each.Regardless of the price cap, buyers of Russian fuels will likely see discounts when the ban takes effect, Smith predicted.Discounted oil prices have allowed Russia to maintain strong seaborne crude exports even after the December embargo. While Moscow's energy revenue has fallen, the key point is that neither Russian production nor exports have crashed, Smith noted. "You have countries, such as India, that's able to purchase Russian crude at a significant discount, and so they do it," he said. "We've seen a number of EU countries taking crude and diesel from Russia over the last year because of the economics, rather than self-sanctioning. Pricing has driven the energy situation with Russia."

You Searched For "new diesel price" and got 3 results

Petrol-Run Cars Outselling Diesel Variants In India, Thanks To Narrow Margin Between The Fuels

Economic Times

Diesel extends gain over petrol in Delhi after 7-day pause

IANS

Here's why Europe's new Russian fuel sanctions won't cripple Moscow

Phil Rosen

Popular Keywords

Buying Guides