Diesel vehicles sales rise despite hike in registration fee in Delhi

Diesel vehicles sales rise despite hike in registration fee in DelhiThe sale of diesel vehicles has risen significantly in the national capital despite a decision by the Delhi government to increase the registration fee for such vehicles.

The increase in sales for both private and commercial indicates that the decision to discourage people from buying diesel of the Delhi government has failed to have the desired results as the sale of diesel vehicles increased in the current financial year as compared to previous years.

The latest data from the transport department showed that a total of 54,515 diesel vehicles have been registered ill February in the financial year 2011-12. Out of the total 54,515 vehicles, 42,092 are private vehicles and 11,423 are commercial vehicles. In the financial year, a total of 39,187 new diesel vehicles including 31,893 private and 7,294 commercial vehicles, were registered in the capital.

Delhi Chief Minister Sheila Dikshit has introduced a 25 per cent hike in the registration fees during the previous budget to discourage people from buying diesel vehicles.

According to estimates, the oil retailers in India will suffer a loss of about Rs. 82,000 crore in 2011-12 from selling diesel. The petroleum ministry is also looking into ways for reducing the use of subsidized fuel in cars and has recommended higher duty on the purchase of diesel cars to the finance ministry.