Why we might soon stop buying Diesel cars ??

Petrol prices = Diesel prices 

The price difference between the two is negligible as of 26th June 2020, Delhi.


When we bought diesel cars earlier, we would calculate the price difference of fuel, the fuel efficiency figures and how much we expect to drive in a month on an average. 
This helped us calculate the no. of years it would take to compensate for the extra price we are paying for a diesel car.


Let's take an example of Tata Altroz -

Price difference between petrol and diesel variants - ₹1.6L ex-showroom.

Fuel effeciency 
                Petrol - 13 kmpl.          Diesel - 18 kmpl
cost/km -  ₹6.23                              ₹4.5
(@ fuel price ₹81/L )
Difference in cost per km = ₹6.23 - ₹4.5
                                             = ₹ 1.73
Kilometers to be driven to compensate for ₹1.6L  = ₹1.6 L / ₹1.73 km
           = 92,485.5 km

No. of years to be driven to cover up for extra price - 

 Avg. K M / mth.               Years Required
--------------------------             --------------------------
   600 km/mth                      12yr 10mth
  1000 km/mth                      7yr 8.5 mth
  1500 km/mth                      5yr 1.65 mth
  2000 km/mth                      3yr 10.25 mth

This calculation excludes the extra interest on ₹1.6L that you are paying for a diesel car.
Apart from this diesel cars have higher maintenance/service cost than petrol cars, generally around 10%.
Petrol cars are generally more refined than the diesel cars.

So, considering these facts more and more people will move towards petrol cars than diesel.


Location: India

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