Expected Diesel Price hike

The Indian Government came up with an increase of Rs.7.50 per litre in petrol prices yesterday. This is the steepest one-time increase in petrol prices in Indian history.

Through various news channels, we also learned that government (State Oil Companies) is loosing Rs.8/litre of petrol; thereby justifying the price hike.

At the same time, we learned that the government is loosing Rs.13/litre of diesel. And there were talks about maybe an increase in prices of diesel; maybe Rs.3-Rs.5 per litre.

I am not sure if that will happen because a diesel price hike will have a direct impact on inflation.

But this shows that sooner or later; the government will need to bow down to economics and increase prices of diesel.

Decentralized solar suddenly becomes more attractive:

1. Higher cost per kWh with diesel compared to Solar

2. Operating hassles in diesel power generation

3. Increasing (expected) diesel cost and decreasing solar cost

4. Green Image of a company

5. Government subsidies when combined will make solar more attractive


Suddenly the off-grid market seems more attractive.






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2 Responses to Expected Diesel Price hike

  1. Shah Chirag says:

    LPG price is also expected to rise. In our country people use hot water for daily needs and also with
    increse in electricity price (imported coal price has also gone up), solar would play important role in
    coming days. We can have more solar water heater as well as solar charged vehicle to solve this problem


  2. Chirag you are right.
    We do see that Solar water heaters are getting more common ; the market is silently growing.
    On the solar PV side as well, the market should open soon….may this is what the Indian manufacturers were waiting for.


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