Correcting the Divergence Between Diesel and Petrol Pricing

Sector:Climate Policy Undertaken By: Integrated Research and Action for Development Recent Publication:2017

Due to differences in the taxes that are levied on diesel and petrol, a price distortion between the two fuels persists making diesel a substantially cheaper fuel. This has inclined consumer behaviour towards diesel vehicles, which are excessively polluting as compared to petrol vehicles. The World Health Organization (WHO) has declared diesel exhaust carcinogenic. Given this context, Shakti supports policy research on the pathways to reduce the significant price difference between petrol and diesel.