APRIL 28(WTN) - About 10 years ago, there was a difference of Rs 20 per liter between petrol and diesel prices in the country. But the price difference between petrol and diesel has been reduced to just Rs 8 per liter nowadays due to increasing oil prices in the international market and reducing subsidy by the government. There has never been so less difference in the prices of petrol and diesel so far and its effect is most visible on the car market. Sales of diesel-driven cars in the country are rapidly declining. The share of diesel engine cars has dropped from 44 percent to 35 percent in these two years.

In October 2014, the government revoked its control on diesel price and this authority was given to oil companies to fix prices on basis of cost. Prior to this, in June 2010, the UPA government had revoked its control to fix petrol price. Now the oil companies decide the prices of petrol and diesel daily as per market and cost. The difference in price is decreasing rapidly in both fuels.

As a result, the share of diesel driven cars has fallen from 35 percent to 29 percent. And as the selling of BS-6 fuel will be started, selling of diesel cars will be reduced. In the BS-6 standard, diesel costs more than to patrol to purify fuel.

The selling of diesel driven cars has been decreased sharply in the last two years. There is a lot of doubt in the market about diesel because nobody knows when a major ban on diesel would be taken by the government or the court for pollution.