Impact of New Government Regulations on Petrol and Diesel Vehicles

Government regulations play a major role in shaping the future of the automobile industry. In recent years, the government has introduced several new norms to control pollution, boost fuel efficiency, and encourage the adoption of cleaner mobility. These rules directly affect petrol and diesel vehicle owners — from the type of fuel they use to the taxes they pay and even how long they can use the vehicle.

This article explains the impact of new regulations on petrol and diesel vehicles, what changes consumers should expect, and how these rules influence vehicle prices, maintenance, and long-term ownership.

1. Stricter Emission Norms

a) BS6 Phase II Regulations

One of the biggest regulatory changes is the transition to BS6 Phase 2, which requires automakers to reduce emissions even further.
Impact on petrol & diesel vehicle owners:

• Vehicles become costlier due to advanced exhaust and engine technology.
• Better fuel efficiency in some models.
• Engines tuned for cleaner combustion may feel slightly different in performance.

b) Real Driving Emission (RDE) Testing

RDE testing ensures vehicles meet emission norms not only in labs but also in real traffic.
Impact:

• Cars have become more accurate in emission reporting.
• Addition of sensors and onboard diagnostics increases maintenance costs slightly.

2. Fuel Price and Tax-Related Rules

a) Green Cess and Environmental Taxes

Many cities are implementing green taxes on older petrol and diesel vehicles to reduce pollution.

Impact:

• Higher re-registration fees for older vehicles.
• Increased yearly road tax in polluted metro cities.
• Encourages owners to shift to newer, cleaner models or EVs.

b) Push for Cleaner Fuel

Government mandates the use of:

• E20 fuel (20% ethanol blend) in petrol
• Biodiesel blends in diesel

Impact:

• Petrol engines must be compatible with ethanol-blended fuel.
• Older vehicles may face reduced mileage or engine wear if not compatible.
• Fuel stations upgrading to supply E20 across India.

3. Ban and Restrictions on Older Vehicles

a) 10-Year Diesel & 15-Year Petrol Rule

Several cities already enforce the rule banning:

• Diesel vehicles older than 10 years
• Petrol vehicles older than 15 years

Impact:

• Reduced resale value of older vehicles.
• Need for timely scrapping or upgrade.
• Rise in demand for new vehicles with lower emissions.

b) Vehicle Scrappage Policy

The government’s voluntary scrappage policy offers:

• Discounts on new car purchase
• Tax benefits
• Scrap value for old vehicles

Impact:

• Encourages owners to dispose of end-of-life vehicles.
• Reduces pollution from old engines.

4. Higher Registration and Insurance Costs

New rules require:

• Higher registration charges for high-emission vehicle categories
• Higher insurance premiums for diesel cars due to environmental risk factors

Impact:

• Increased on-road price of diesel vehicles
• Owners pay more for long-term insurance
• Many buyers shifting to petrol, CNG, or hybrid alternatives

5. Promotion of Electric Vehicles

Government rules indirectly push buyers toward EVs by:

• Offering subsidies
• Reducing road tax
• Providing incentives for charging infrastructures

Impact on petrol & diesel vehicles:

• Reduced demand may increase resale value fluctuations
• Automakers increasing hybrid options
• Some models discontinued to meet future emission norms

Why Choose a Petrol or Diesel Vehicle Now?

Despite the regulations, petrol and diesel vehicles still have their advantages:

1. Better Long-Distance Performance

Diesel engines remain efficient for highway driving and heavy-load use.

2. Wider Fuel Availability

Petrol and diesel refueling stations are available everywhere, unlike EV fast-charging stations.

3. Lower Purchase Price vs EVs

Many petrol models are still priced lower than electric vehicles with similar features.

4. Proven Reliability

Internal combustion engines have decades of proven performance and durability.

5. More Options Across Segments

From small hatchbacks to large SUVs, petrol and diesel vehicles offer diverse choices.

Conclusion

Government regulations are reshaping the future of petrol and diesel vehicles, primarily to reduce pollution and promote cleaner mobility. While stricter norms and taxes may increase costs, they also ensure cleaner fuel, safer engines, and better air quality. Vehicle owners should stay informed about new rules, especially relating to emissions, re-registration, and fuel compatibility.
Petrol and diesel vehicles still remain strong choices for long-distance drivers, rural users, and those seeking affordability — but the shift toward hybrid and electric mobility is steadily increasing.

FAQ

Q1: Will petrol and diesel cars be banned soon?
No, there is no nationwide ban. Restrictions apply mainly to old vehicles in polluted cities.

Q2: Why are diesel cars becoming more expensive?
Due to added emission technology, higher insurance rates, and environmental taxes.

Q3: Is E20 fuel safe for all petrol vehicles?
Newer cars are E20-ready. Older vehicles may experience lower mileage or engine stress.

Q4: Should I switch from diesel to petrol now?
If you drive short distances, petrol is better. For long highway drives, diesel is still efficient.

Q5: Are electric vehicles cheaper to maintain?
Yes — EVs have fewer moving parts and lower running costs, but higher initial purchase prices.