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The government is considering a proposal to charge more for diesel used in “luxury“ cars. MPs asked the government in Parliament Thursday not to supply subsidised diesel for cars.
Petroleum minister S.Jaipal Reddy, asked outside Parliament if the government was considering dual pricing of diesel, said it was being considered by the finance ministry. He said he “made some proposals, but it was up to the finance minister to consider“.

There was no indication till late Thursday about what vehicles would be considered “luxury“ cars. The PSU oil marketing companies are losing `6.82 per litre on sale of diesel.

It is learnt that the finance ministry might also consider a hike in excise duty on diesel cars.

Finance minister Pranab Mukherjee also said Thursday the government was moving in the direction of diesel price decontrol. “We are moving in that direction... There are no other proposals under the government's consideration,“ Mr Mukherjee said outside Parliament.

Earlier, during the price debate, he said the government could consider the Opposition's suggestion and try to work out a mechanism so “this section (diesel car owners) are not subsidised“.