DIESEL DIESELPRICE PRICE HIKE HIKE IN IN INDIA INDIA

WHAT IS DIESEL FUEL?

Diesel fuel is used to any liquid to fuel a diesel engine.

The diesel engine was patented in 1892 by Dr Rudolf Diesel. While traditional gasoline fuelled engines use a spark plug to create ignition, diesel engines use heat and pressure to cause fuel ignition through internal combustion. Diesel is considered much safer than traditional gasoline for many applications because it does not give off a large amount of flammable vapour and will not explode at atmospheric pressure. It is also has far better lubricating properties and causes less engine wear.

HOW IS DIESEL FUEL USED?

Diesel fuel is widely used especially in the transport industry.

It is the most commonly used fuel for engines in extra heavy vehicles including large marine transport vessels and non-electrified railway locomotives.

The largest and most powerful engines in the world are slow speed, two-stroke diesel engines.

Since the 1930s, diesel has been commonly used in large cars, off-road

vehicles and armoured military fighting vehicles such as tanks.

CONT.,

Diesel engines enjoy greater efficiency, lower flammability, and are less likely to stall.

Diesel is becoming increasingly popular for use in regular cars, a result of the higher efficiency of diesels engines, as well as their ability to run off biodiesel.

In 2007, more than 50% of all new car sales in Europe were diesel-powered vehicles.

Diesel is ideal for noise and efficiency sensitive applications such as submarines.

WHO USES DIESEL FUEL?

Diesel is used in countries all around the globe.

The USA is the single largest consumer of traditional diesel, consuming more

than 149 billion litres .

This amounts to roughly 19% of total global consumption.

The next biggest consumer is China, accounting for 6.8% of global consumption , or roughly 51.8 billion litres.

CONT.,

The third biggest consumer was France, with 4.3% of global consumption, or roughly 33.2 billion litres.

Other major consumers include Japan (4.0%), Brazil (3.8%), Germany (3.7%), Spain (3.6%), Italy (3.3%) and India (3.2%).

Australia, with a consumption of 8.4 billion liters in 2005, accounts for roughly 1.1% of global consumption.

WHERE DOES DIESEL FUEL COME FROM?

Diesel is produced all over the globe. In 2005 the USA was the largest producer of traditional diesel, producing 202 million tonnes, or roughly 18.6% of global production.

The second biggest producer was China, producing 111 million tonnes, or roughly 10.2% of global production.

Russia was the third largest producer, accounting for 60 million tonnes, or roughly 5.5% of global production.

CONT.,

Other major producers of traditional diesel are Japan (5.3%), Germany (4.8%), India (4.5%), Brazil (3.1%), Saudi Arabia (2.9%), South Korea (2.9%)

and Canada (2.8%).

Australia is responsible for 10.8 million tonnes, or roughly 1% of global diesel production. Interesting facts diesel fuel about :

The worlds largest and most powerful engines are powered by diesel. Diesel is often used to power submarines.

Volkswagen produced a diesel-fuelled car, the XL1, which can travel 100km on just 1 litre of diesel fuel

DIESEL CONSUMPTION IN INDIA

In 2008-09, the Petroleum Planning and Analysis Cell of the Union petroleum ministry had estimated the total diesel consumption in the country at 51.7 million metric tonnes.

In 2011-12, the Society of Indian Automotive Manufacturers and the Working Group on Petroleum estimated the consumption at 63 million tonnes, an increase of 22%.

Currently, the under-recoveries on diesel are aboutRs14/litre.

REASON BEHIND THE HIKE

As expected the Government of India has increased the prices of petrol, diesel,
LPG and kerosene.

This is apparent as the government wanted to free the prices of petrol and
diesel from its control by making it market driven.

These years, the government and the oil companies were taking the brunt, every
time when the global oil price was shooting up, the government had to intervene and suffer huge loss.

CONT.,

From now on, the government is free of all the headaches.

If the price go up in the international market, it would automatically be reflected in India as well.

Well, if the oil price crashes, the benefit is for the end user.

DELHI DIESEL PRICE HIKE CHART

MUMBAI DIESEL PRICE HIKE CHART

KOLKATA DIESEL PRICE HIKE CHART

CHENNAI DIESEL PRICE HIKE CHART

HOW PEOPLE REACTED ON THE PRICE HIKE (Reuters) - Schools, businesses and government offices were shut in many parts of India on Thursday(20/09/2012) as protesters blocked roads and trains as part of a one-day nationwide strike against sweeping economic reforms announced by the government last week.

The main opposition Bharatiya Janata Party (BJP) and smaller parties from both the political left and right called the strike to protest against a 14 percent increase in heavily subsidised diesel prices, and a government decision that opens the door to foreign supermarket chains investing in India.

DIESEL SUBSIDY

The annual diesel subsidy is likely to be of the order of about Rs 106,000 crore, assuming no further depreciation of the rupee, nor any increase in oil prices. Diesel is used for diverse purposes trucks (37%); passenger cars (15%); buses (12%), agriculture (12%), industry (10%), power generation (8%) and rail (6%).

The government should emphasise that this measure will not affect the 70% of the population that lives in rural communities and depends on diesel for their

pump sets, tilling and transportation.

THEY DESERVE SUBSIDY

DO THEY DESERVE SUBSIDY ? ? ?

CONCLUSION

THE AVAILABILITY OF DIESEL FUEL IN THE FUTURE AROUND THE GLOBE