'CVs consume bulk of diesel subsidy'

'CVs consume bulk of diesel subsidy'

Commercial vehicles (CVs) were the largest beneficiary of subsidy on diesel in 2012-13, according to a government-sponsored  survey. Non-transport sectors likes agriculture and telecom towers were also major consumers of the subsidised fuel.

The survey, conducted by Nielsen for the oil ministry's think-tank, Petroleum Planning and Analysis Cell, showed that of the total revenue losses on sale of subsidised diesel amounting to Rs 92,061 crore in 2012-13, around Rs 12,100 crore went to owners of private cars and utility vehicles, about Rs 8,200 crore to commercial cars and utility vehicles, and nearly Rs 26,000 crore to heavy and light commercial vehicles.

Further. about Rs 8,800 crore of the subsidy was used by buses, about Rs 12,000 crore by the agriculture sector and about Rs 15,600 crore by other sectors. During the year, diesel constituted about 57.2 per cent of the total revenue loss on all subsidised petroleum products.

 The total diesel sold in the country during 2012-13 was 69,08 mln tn and petrol was 15.74 mln tn. While Diesel constitutes 44 per cent of total consumption of petroleum products in India, petrol accounts for 10 per cent, the survey said.

"Out of the total petrol and diesel sales in the country, more than 99 per cent of the Petrol and 90 per cent of the Diesel is sold through retail outlets (petrol pumps), for which there is no system of capturing the consumption data of the sectors and categories based on their end-use," the survey noted.

While pricing of petrol was deregulated in June 2010, diesel prices are still being regulated, with public sector oil marketing companies still losing 8.47 rupees a ltr at present.

Transport sector is the major consumer of diesel, accounting for 70 per cent of the total diesel sales. The share of diesel consumption by cars, utility vehicles, and 3-wheeler sector is highest at 28.48 per cent.

Agriculture is a major consumer of diesel at about 13 per cent of the total consumption accounted for by it. Within agriculture, tractors consume highest at 7.4 per cent, followed by pump-sets 2.9 per cent and implements 2.7 per cent.

Petrol was almost entirely, 99.6 per cent, consumed by transport sector, with two-wheelers at 61.42 per cent of  petrol sales while that by cars is 34.33 per cent, three-wheelers account for  2.34 per cent.

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