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DIESEL PRICE HIKE IN INDIA

DIESEL PRICE HIKE IN INDIA

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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.

WHAT IS DIESEL FUEL?

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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.

HOW IS DIESEL FUEL USED?

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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 offbiodiesel.

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.

CONT.,

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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.

WHO USES DIESEL FUEL?

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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.

CONT.,

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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.

WHERE DOES DIESEL FUEL COME FROM?

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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 globaldiesel 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

CONT.,

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In 2008-09, the Petroleum Planning and Analysis Cell of the Union petroleumministry 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.

DIESEL CONSUMPTION IN INDIA

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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.

REASON BEHIND THE HIKE

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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.

CONT.,

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DELHI DIESEL PRICE HIKE CHART

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MUMBAI DIESEL PRICE HIKE CHART

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KOLKATA DIESEL PRICE HIKE CHART

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CHENNAI DIESEL PRICE HIKE CHART

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(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 politicalleft 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.

HOW PEOPLE REACTED ON THE PRICE HIKE

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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 purposestrucks (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 theirpump sets, tilling and transportation.

DIESEL SUBSIDY

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THEY DESERVE SUBSIDY

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DO THEY DESERVE SUBSIDY ? ? ?

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THE AVAILABILITY OF DIESEL FUEL

IN

THE FUTURE AROUND THE GLOBE

CONCLUSION

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