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Petrol vs Diesel: And the Economies of Scale
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With the prices of petrol skyrocketing, car buyers seem to be lining up to book diesel variants as they are highly economical and easy on the pocket compared to their gasoline counterparts. Well, that is only if you discount everything else and consider the running cost. We at ZigWheels take a look at the bigger picture and bring it down to simple numbers to find the cost-effective option between petrol and diesel fueled variant
The acceptance of diesel vehicles has witnessed a rapid rise in the last decade in India. With the advent of new technologies such as common rail direct injection, EGR systems and exhaust treatment systems, diesels today offer great performance, excellent mileage and on many accounts it is the cleaner fuel! The inherent ability of diesel engines to produce excellent low end torque makes for great driving; however these factors basically aided diesel engines to gain an acceptance in the passenger car market as they didn't spew black smoke like in the past. The icing on the cake however has to do with the pricing of fuel. Assuming Diesel is priced at around Rs. 50/litre and petrol is approximately Rs. 70/litre. The rates change in different parts of the country; however the ratio of difference between the two is more or less the same. It is the cumulative knowledge of all these facts that make diesel engined passenger vehicles the number one choice for many customers, however there is a chink in the diesel armour and that has to do with the pricing of the vehicle as compared to its petrol counterpart.
A deeper insight is required while trying to decipher the cost benefit between diesel and petrol vehicle variants. Elements such as the timeline of usage, cost difference between the two models, fuel price disparity, maintenance expenses and service charges, parts wear and tear and depreciation costs sum up the major list to assist in calculating the actual benefit. It is a line of thought that most customers overlook, however our cost-benefit study should shed some light on the topic and hopefully help customers make a more informed decision, rather than just going with gut instinct or following the claims of manufacturers.
Note: The study is based under the following assumptions:
1. Costs of Petrol and diesel are for representational purposes only
2. The difference in price of petrol and diesel remains constant throughout the five years.
3. Cost of repairs and maintenance on both the variants remains nil or equal.
4. Both the variants will bring in 50% of the cost at the time of resale
5. Average driving is 15,000kms/year for both the variants. (in case 2)
6. The car model under consideration is the new Maruti Suzuki Swift (entry level variants for both diesel and petrol). This is only indicative, and gives a good idea since the difference of cost between petrol and diesel variants of other cars also hovers around the same figure.
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Readers' opinions ( 25 )
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Binu Kochi
think of buying Disel car by loan. the EMI is more or less barable. but when your fuel meter shows empty and going for filling and u want to travel more.... u start feeling of Diesel varinats. its true.
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piyush joshi
comparison is not realistic as calculation of car cost difference is considered in first year only wereas everybody generaly uses car for minimum 3 to 5 years so same should be divided on prorata basis, request to revive the comparison as it misguides people viewing these type of wrong claculations.
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raj
you are calculating A as the initial car cost difference.you are adding it to the first year expense.however if you are doing so, please calculate the next 3 years by adding b c and see the difference as the initial car cost was already added in the first year.
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sanket
Very informative. Thanks. Keep up the good work!
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Sumanth
This is a very good article, cleared many of my doubts, now i shall plan accordingly and go for a right choice.
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