Government to levy 25% cess on big diesel cars

Prices of GM’s Captiva, Mitsubishi Montero, Mitsubishi pajero and many more big diesel cars may soon undergo a dramatical raise. Government of India is considering dual pricing strategy for diesel fuel to limit the losses incurred by Oil marketing Companies. As part of a dual fuel pricing policy, Government may impose a 25 per cent cess on ‘BIG’ diesel cars. What ‘BIG’ diesel cars really refers to? any car above 4meters in length. Then expect things to go much worser.

“Big car owners do not deserve subsidised diesel. We want them to pay market price but it will be difficult to ask petrol pumps to charge them higher than other vehicles. So it is being debated if a 25 per cent cess on the car price may be imposed on big cars,” a top Petroleum Ministry official said. “The idea is to limit sale of subsidised diesel to transport and agriculture sectors only,” he said.. If cabinet approves the policy,  Petroleum Ministry expects the cess on big diesel cars would give about Rs 150 crore additional revenues annually.

Straightfrmtheheart: Frequent changes in automobile policy would hit the market badly. The uncertain policies would create confusion and might deter auto majors from making further investments. Please stay firm on your policies.

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