While making decision to buy a new car, many times people come around the important but confusing question “Should it be Diesel or Petrol?”. Well let me help you out for finding the better solution for the question.

As we can see from the current scenario in the market that, a Diesel car model costs more than that of the Petrol car model. Normally the price difference is around INR 1,00,000, may be higher or may be lower. So for now we’ll take it as 1,00,000.

Consider an example for understanding it in a better way. You’re planning to buy a new car named as ‘XYZ’. You’ve two different variants available for this model as ‘XYZ Petrol’ and ‘XYZ Diesel’. Suppose you’ll be driving 1000km per month. So, If your XYZ Petrol model gives mileage of 15kmpl, then it will be consuming **1000/15 = 66.66** (let’s say 70 liters for simplicity) of petrol in a month. Whereas your Diesel model with mileage of 20 kmpl, will be consuming **1000/20 = 50** liters of diesel.

**What we’ve assumed in above example:**

Mileage of XYZ Diesel = 20 kmpl

`Mileage of XYZ Petrol = 15 kmpl`

`Your monthly driving distance = 1000 km`

XYZ Petrol | XYZ Diesel | |

Price | INR 6,00,000 | INR 7,00,000 |

Mileage | 15 kmpl | 20 kmpl |

Monthly Consumption | 65 liters | 50 liters |

Monthly cost for fuel (INR) | 70 x 70 = 4900 ~ (5000) | 50 x 50 = 2500 |

Fuel Cost after 1 year | 12 x 5000 = 60,000 | 12 x 2500 = 30,000 |

Fuel Cost After 2 years | 24 x 5000 = 1,20,000 | 24 x 2500 = 60,000 |

Fuel Cost After 3 years | 36 x 5000 = 1,80,000 | 36 x 2500 = 90,000 |

At the end of the 3^{rd} year the money you spent for the Diesel will be around INR 90,000. On the other hand the money you spent on the Petrol will be around INR 1,80,000.

Fuel costs after 3 years:

XYZ Diesel = 90,000

XYZ Petrol = 1,80,000

Profit on Diesel model = 1,80,000 – 90,000 = 90,000

This profit on Diesel model is nearly equal to the extra cost you paid at the time of buying it.

i.e., Price(XYZ Diesel) – Price(XYZ Petrol) = INR 1,00,000,

which will be recovered after the 3 years in terms of the fuel costs.

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Well, this simple calculation may help you decide which one is better choice for you. In case you’re looking to buy car for the long term use like 5 years, then it’s better to go for Diesel. Otherwise you may choose Petrol variant. Also you can change the values in the above model according to your needs and pick up the best choice.

Hope you liked the post, you too can suggest the better ways of choosing the car models. Please do share your views through your comments. Thank you :-).

(Please note that, the prices of the diesel and petrol may rise or fall down, I’ve just put this mathematical explanation considering the current prices.)

very valid formula , absolutely practical thought process ..loved it !! at the end of the day what we are saving , probably , is the amount we have already paid .. buying a diesel car This is what you call Logic !! amazing post !

http://MySay.in

thanks buddy, I’m glad that you liked it.

Hi Nikhil.. what about the average maintenance costs??? Good comparisions on the fuel costs.

thanks and regards

Gavin

hi Gavin, I haven’t included the maintenance costs for both cars as it sometimes approximate to the same value. Thanks for appreciating

kmp month FE fuel Cons Fuel Rate Fuel Cost/month months overall cost

3000 20 150 50 7500 36 270000

3000 15 200 70 14000 36 504000

the overall savings is 234000, if you buy say a Car value 5.0 lac after 3 years you wont repent selling, after 30 years you get at least 30 % of car value at least 1.5 lac, so just switching to a diesel and travelling more mean you have spent just 1 lac for a proud car owner, people have money but they don’t travel a lot coz the fuel cost will supsede its car cost in just 3 years, you above math may be true in you given condition

You are forgetting the monthly interest for the 1 lac on bank loan. Also yearly maintenance of diesel car.

Adithya, This is just assumed that the both car are having the same maintenance costs, and if I would’ve thought about the ‘monthly interests’ and all those stats in this article then It would’ve affected the simplicity of it.. Just neglected it, you may calculate it according to your needs…

Calculation is incorrect..when monthly consumption for petrol is 65 L, why have you multiplied with 70. That is equalling to Rs. 16200 more for Petrol.

Dear Shalini, Didn’t you notice the total calculation? Have a look at it again I’ve said that the values are approximation for the sake of simplification..

Excellent analysis, however I just need to know in other scenarios where we get diesel cars within 6 lakhs (Chevrolet beat, ford figo diesel to name some) bracket compared to petrol cars. With these don’t you think we would save on fuel economy?

Hi,i m planning to buy a new car, my monthly usage avg.1500 km.& my budget is 5 lakh with finance but I confused abt.petrol or diesel car so plz suggest me….

i am planning to buy Honda city SMT 1.5 pertrol, i test driven Verna diesel fludic (top model, bad suspension), Amaze diesel (top model, engine noise, gud suspension). i still like the suspension and road comfort of honda city. Do you think that its a right decision to buy a honda city i-vtec Vs other diesel variants? your early response will really help.

Hello Saurabh,

While buying car, if economy is not your problem, then you should best go with the one which is more comfortable for you to drive.

What about torque,petrol cars has less torque than diesel….

i have a forst fiesta diesel model 2009, till 2013 july have run apprx 70,000 km, is it worth buying a diesel car for such usage or petrol.

Hi Nice calculation, just adding one more this, we are paying extra while buying diesel car also we are getting extra while selling diesel car.

maintenance cost not much than petrol car.

Thanks Shahu, for sharing this point