Originally Posted by mukeshus
If that's the case why Govt is not hiking diesel prices and leave petrol prices untouched?
Because Petrol prices are "decontrolled" and diesel prices are still controlled.
Government do not have the courage and will to decontrol diesel prices.
Diesel consumption is mainly for commercial transportation (Trucks, buses etc) only 15% of the total diesel sold is consumed by cars. In this 15% also majority usage is taxies.
So poor man using petrol and rich man using diesel arguement do not hold any ground or logic.
But the real issue is taxes for both petrol and diesel.
First remove that ridiculous tax structure for Petrol and diesel and charge normal Excise duty and Sales Tax like other items, then see how much subsidy is involved. There is no need of any subsidy then.