A bulk of diesel subsidy is being enjoyed more by economically better off class of consumers rather than the needy, minister of state for petroleum R P N Singh said.On Thursday, R P N Singh told Parliament that roughly 22 litres out of every 100 litres of subsidized diesel sold in the market is being used by economically better off class of consumers to run private cars, SUVs, power-generators and mobile towers.

According to Mr. Singh, out of the 64.7 million tonne of subsidized diesel sold in 2011-12, around 16 per cent was used to run passenger vehicles, nearly 5 per cent of the fuel went to generators, while nearly 2 per cent was guzzled by mobile towers.

The latest stats further strengthened the oil ministry's proposal for imposition of a one-time 'diesel tax' on private vehicles, generators and cellphone towers.

Oil minister S Jaipal Reddy had in June suggested a one-time special excise duty of Rs 1.70 lakh on small diesel cars and Rs 2.55 lakh on medium and big cars. He said buyers of diesel cars should be made to pay upfront the price differential with petrol that he/she would enjoy later.

Diesel sales jumped 7.8 per cent in 2011-12 to 64.74 million tonne, even as growth consumption in all fuels taken together registered a growth of below 5 per cent.