According to auto sector experts, cars with petrol engines have now become more economical to buy and own compared to those powered by diesel engines following a hike in price of diesel in the country.

Diesel cars are prices much higher than petrol vehicles in the country and the latest hike in the price of diesel has made petrol variants more cost effective by a few thousand kilometers on the basis of total costs that includes price of the car as well as the price of fuel.

Experts say that if factors like the price of the car and the total cost of fuel in a given period of time shows that petrol variants are becoming more economical in the country. The prices of Diesel, domestic LPG and Kerosene within the Public Distribution Centre, had not been changed since June of 2011. The cost of these fuels has increased by 28 percent during the same time period.

The state run oil marketing firms have incurred a loss of more than Rs 5 per litre on sale of petrol. Diesel is being sold at a loss of Rs 19.26 a litre, kerosene at Rs 34.34 per litre and domestic LPG at Rs 347 per 14.2-kg cylinder in the country.

Diesel prices were raised by Rs 5.63 per litre to Rs 46.95 a litre on 14 September to reduce the losses incurred by the oil companies in the country.