The move has been proposed in order to discourage consumption of subsidised diesel by personal vehicle owners

The Ministry of Petroleum and Natural Gas is demanding an increase in excise duty on diesel cars with a view to discouraging consumption of subsidised fuel by personal vehicle owners. "A proposal was received from Ministry of Petroleum and Natural Gas for levy of additional excise duty on diesel cars along with their suggestions for Budget 2012-13," Minister of State for Finance S S Palanimanickam said in a written reply to the Rajya Sabha.