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Petrol vs Diesel: And the Economies of Scale

by Ravi Ved and Dilip Desai Pictures: Kunal Khadse
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Posted on 18 Nov 2011

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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

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We did the math to compare the cost of operation for an entry level Maruti Suzuki Swift petrol with the diesel variant. The difference in the cost of the two variants is Rs. 90,000 with diesel being the more expensive of the two; add to that the interest one would gain on the excess amount at 10% p.a if the petrol variant was purchased. The diesel variant being more efficient and the cost of diesel being Rs. 20/litre lesser than that of petrol, it saves a lot of expenses on fuel (See Case 1), but the cost of regular

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Petrol vs Diesel: And the Economies of Scale Page - 2| Zigwheels.com

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maintenance of the diesel variant is higher than that of its petrol equivalent. Taking all these dynamics into account, the running cost of a petrol car comes to approximately Rs. 4.93/km in comparison to Rs. 9.5/km for the diesel if both the vehicles are run for 15000kms annually. Increasing the annual mileage put on the odometer, the diesel is at par with the petrol variant if and only if a person does a minimum of 45,000kms annually.

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Newest | Oldest | Recommended (14) | Most Discussed | Agree | Disagree Agree (49) Disagree (39) Recommend (11) Offensive (0)

Sekar (coimbatore) 21/11/2011 at 12:34 PM Excellent analysis. Really,gives some insight into the first time buyers who are always confused between the two. You may also work out the comparison, if one buys the car on 80% loan. Please include the annual insurance cost, life tax etc.,

Ajith (goa) 21/11/2011 at 12:01 PM I have an opinion against one assumption "Both the variants will bring in 50% of the cost at the time of resale". This assumption can turn the evaluation completely. In case of Swift diesel to reach half the price after 5 years is a tough guess. I am still offered more than 70 percent of what i paid for my car after 4.5 yrs and 80,000 kms(swift vdi). And a petrol variant with about 12 kmpl mileage would never fetch 50% price after 5 yrs.

Agree (72) Disagree (27) Recommend (10) Offensive (0)

shashank (parli) 21/11/2011 at 11:44 AM Myths ( Diesel is economy ) And Practical ( Petrol is costly ) A intellegent review..

Agree (31) Disagree (22) Recommend (6) Offensive (0)

Nio (Bangalore) 21/11/2011 at 11:26 AM Good analysis . Also the performance of Petrol cars are a tad better than Diesels .

Agree (23) Disagree (30) Recommend (3) Offensive (0)

Ravi Jain (Bhutan) 21/11/2011 at 10:40 AM Informative article. Thanks a lot

Agree (16) Disagree (15) Recommend (1) Offensive (0)

nc (Bangalore) 21/11/2011 at 10:20 AM Difference on purchase price should not be required every year. Which creates this disproportional comparison.

Agree (58) Disagree (18) Recommend (10) Offensive (0)

Vijay (Chennai) 21/11/2011 at 10:15 AM Excellent post.... Thanks for ZIG wheel.. I have been cribbing myself to have bought Petrol Version... Now after reading this article i'm happy to have bought Petrol Car....

Agree (21) Disagree (13) Recommend (3) Offensive (0)

Vivek Rathore (Gurgaon) 21/11/2011 at 09:55 AM A perfrect analysis by Zigwheels. This would work as eye opener for all new car buyers.

Agree (11) Disagree (12) Recommend (1) Offensive (0)

abhishek (bamgalore) 21/11/2011 at 07:38 AM this has been very much eye opening, its pretty simple once you get the economics right.

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saumya (noida)

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Petrol vs Diesel: And the Economies of Scale Page - 2| Zigwheels.com

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18/11/2011 at 05:38 PM Extremely useful information.. thanks

Agree (6) Disagree (9) Recommend (0) Offensive (0)

THOMAS (ARIYALUR) 18/11/2011 at 05:32 PM This is really an eyeopener for the people who are going after Diesel cars though their running is very low.

Agree (10) Disagree (14) Recommend (1) Offensive (0)

Vicky (Mumbai) 18/11/2011 at 05:13 PM Its a simple and most practical way to differentiate between the 2 fuel variants for a logical person.

Agree (6) Disagree (12) Recommend (1) Offensive (0)

Umar (Pune) 18/11/2011 at 05:09 PM Great post for prospective but indecisive buyers who are not sure of the variant they should go for. There is, however, a minor typo in the article on Page 1...it should read " chink in the diesel armour " and not " kink in the diesel armour "

Agree (6) Disagree (11) Recommend (2) Offensive (0)

Ram (Hyderabad) 18/11/2011 at 05:06 PM Good calcuation....This is the same calculation I made when I bought my Swift in 2007...My home is 5 kms away from office and even if I include the weekend trips it would be 700 kms per month...Thats when I bought my VXI.... Now I am in the process of getting a Mercedes C200 petrol for the same reason...Bcoz of my personal reasons I dont drive long distances...

Agree (18) Disagree (12) Recommend (2) Offensive (0)

ks (tn) 18/11/2011 at 05:00 PM If such is the case, then why still people go for diesel over petrol cars?

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