Features/ Tg-explains/ Diesel vs. Petrol Cars in India | Calculations Explained for 2024

Diesel vs. Petrol Cars in India | Calculations Explained for 2024

Diesel cars reigned supreme for superior fuel efficiency and torque, making them ideal for highway cruising and demanding terrains. However, the tide seems to be turning. With rising diesel prices, stricter emission regulations, and increasing taxes, many car buyers are now questioning the viability of diesel vehicles.

 

The Allure of Diesel: A Legacy of Efficiency

Diesel engines have traditionally offered several advantages over petrol engines:

Fuel Efficiency: Diesel engines extract more energy from each liter of fuel, leading to better mileage, especially on long journeys.

Torque: Diesel engines produce higher torque at lower RPMs, resulting in better pulling power, ideal for hauling cargo or navigating rough roads.

Durability: Diesel engines are known for their robust construction, potentially leading to a longer lifespan compared to petrol engines.

These factors made diesel cars the preferred choice for taxi operators, fleet owners, and those who frequently undertook long-distance trips.

 

The Diesel Dilemma: Rising Costs and Environmental Concerns

However, the landscape for diesel cars is changing:

Price Parity: The price gap between diesel and petrol has narrowed significantly. Government policies and global oil price fluctuations have eroded diesel's advantage in fuel cost.

Higher Taxes: Diesel vehicles attract a higher Goods and Services Tax (GST) and often face additional road tax levies compared to petrol cars. This significantly increases the upfront purchase cost.

Stricter Emission Norms: BS-VI emission regulations, implemented in 2020, require advanced emission control technology in diesel cars, further pushing up costs.

These factors have made diesel cars a relatively less attractive proposition, especially for smaller, budget-oriented vehicles.

 

Calculating the Math: Is Diesel Still Worth It?

The decision of buying a diesel car now hinges on a cost-benefit analysis. Here's how to calculate it:

Fuel Efficiency Difference: Compare the claimed fuel efficiency (mileage) of the diesel and petrol versions of the car you're considering.

Price Differential: Factor in the on-road price difference due to higher taxes for diesel cars.

Your Driving Habits: Estimate your annual driving distance. If you primarily undertake short, city commutes, the mileage benefit of diesel might be negligible.

Resale Value: Consider the potential resale value of both diesel and petrol variants. Diesel cars might see a depreciation hit in the future.

Here's an example to illustrate:

Car: Mid-size sedan

Diesel Mileage: 25 kmpl

Petrol Mileage: 18 kmpl

Price Difference: Rs. 1.5 lakh (diesel being more expensive)

Annual Running: 10,000 km

Assuming a diesel price of Rs. 85 per liter and petrol price of Rs. 80 per liter, you'll save Rs. 2.50 per liter on fuel costs with a diesel car.

 

Calculation:

Annual fuel cost saving with Diesel = (25 - 18) * 10,000 * 2.50 = Rs. 17,500

Break-Even Point:

For the price difference of Rs. 1.5 lakh to be recovered solely through fuel savings, it would take:

Break-Even Period = Rs. 1,50,000 / Rs. 17,500 = 8.57 years (approximately)

Interpretation:

In this scenario, with an annual running of 10,000 km, it would take over 8.5 years to recover the additional cost of the diesel car through fuel savings. If you plan to keep the car for a shorter duration, the diesel option might not be financially viable. Remember: This is a simplified example. Maintenance costs, potential future fuel price changes, and individual driving patterns need to be factored in for a more accurate assessment.

 

Beyond the Numbers: Environmental Considerations

The environmental impact is another crucial factor. Diesel engines, despite advancements, still emit higher levels of particulate matter (PM) and nitrogen oxides (NOx) compared to petrol engines. These pollutants contribute to respiratory problems and smog. While BS-VI norms have brought down emission levels, concerns remain. If environmental consciousness is a priority for you, a petrol or alternative fuel car might be a better choice.

 

The Road Ahead: Exploring Alternative Fuel Options

The Indian government is actively promoting electric vehicles (EVs) and CNG (Compressed Natural Gas) vehicles to reduce dependence on fossil fuels. These alternatives offer significant environmental benefits and, in some

TopGear Magazine April 2024