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Rising petrol prices hurt the common people, as two-wheelers are the biggest consumer of petrol. Two-wheelers top petrol consumption with 61.42 Percent, followed by cars with 34.33 Percent, a country survey conducted by Nielsen said. Petrol consumption by two-wheelers exceeds 70 Percent of total sales in Odisha, Bihar and Rajasthan, an oil ministry statement said quoting the survey. Government and industry officials say that the survey could be an eye opener for the government, which is to face general elections in few months as steep hike in petrol rates could alienate the rural people. Petrol price soared by over 51 Percent to INR 72.43 per litre since it was deregulated in 2010.

The rising petrol prices have already started affecting sales of two-wheelers, ET first reported about it on Sept 18 quoting a preliminary report of the survey. The report has said the skyrocketing petrol prices would dampen the demand for motorcycles and scooters, the only affordable means of personal transport in rural India. Two-wheelers consumes more 61.4 Percent of the country's 16 million tonnes gasoline sales, and 30 Percent of this comes from villages. The survey said about 70 Percent of diesel and 99.6 Percent petrol are consumed in the transport sector alone. "Of the total diesel sale, the highest consumption of 28.48 Percent is by cars, utility vehicles and three-wheelers," the oil ministry statement said.

The other major consumers of diesel are the agriculture sector, which accounts for about 13 Percent of the consumption. Within agriculture, tractors consume 7.4 Percent diesel, pump-sets (2.9 Percent) and agriculture implements (2.7 Percent). "Tractors have a higher consumption presumably because they are also used for non-agricultural purposes like transportation of construction material such as bricks, stones, mined sand, etc and for transporting people in rural areas," the statement said. Diesel consumption by other segments is 17 Percent, out of that about 9.02 Percent is consumed by the power generators and 1.54 Percent by mobile towers.

While petrol is a deregulated fuel, the government regulates diesel prices. Currently, state oil companies are incurring INR 8.47 per litre revenue loss on the fuel. "The total under recovery on diesel during 2012-13 was INR. 92,061 crores, constituting 57.2 Percent per cent of the total under recoveries/subsidies on all petroleum products. The question as to where the diesel is getting consumed is very relevant in this context," the statement said.

"Based on the above sector-wise consumption pattern of diesel, it would mean that of the total under recovery of INR 92,061 crores on account of diesel during 2012-13, about INR 12,100 crores went to owners of private cars and utility vehicles, about INR 8,200 crores to commercial cars and utility vehicles, about INR 26,000 crores to heavy commercial vehicles, about INR 8,800 crores to buses, about INR 12,000 crores to agriculture sector and about INR 15,600 crores to other sector," it said.

Source-On Request