Petrol vs Diesel: Which is more Expensive in the Long Run

One of the first decisions you'll make when buying a new or even used car is whether to go with petrol or diesel power. Although each has advantages and disadvantages, it's always a good idea to consider how the fuel type you select will meet your specific demands in the long run.

Buyers have had a reason to choose diesel for years due to the cost and fuel efficiency, particularly when long-distance driving is involved. 

However, the argument over Petrol vs. diesel is much more nuanced than it first appears. If you're wondering which is better for you, this guide will provide you with all the information you need. We have compared the owning cost of the petrol and diesel variants of the Hyundai i20 in Gurugram. Based on the current fuel price in February 2023 in Gurgram.

Fuel Efficiency

In general, diesel engines burn fuel more effectively than their petrol counterparts. A diesel engine uses 15-20% less fuel than a petrol engine, depending on the automobile and the engine used.

However, compared to the petrol version of the identical car, the cost of this efficiency is more expensive. This is mostly because diesel engines must operate at higher compression ratios, which requires the use of heavier materials.

On the other side, petrol cars are less expensive primarily because lighter materials are used. Because a petrol engine's compression ratio is lower than a diesel engine's, lighter materials can be employed, decreasing the overall cost of petrol cars. However, the cost of operating these cars has increased due to higher gas prices.

Cost of Running

Now that you have a basic understanding of both fuel kinds, you may choose the one that will best meet your demands by taking into account the following important costs of operation:

Price Difference between Petrol and Diesel variants

Diesel and petrol models of all cars sold in India have a large price gap between them owing to the reasons stated above. 

Let's use the petrol and diesel versions of the Hyundai i20, as an example, to help you understand in a more clear way:

| Hyundai i20 | Magna | Sportz | Asta (O) ||-------------|-----------------|-----------------|-----------------|| Petrol | Rs. 8.68 lakhs | Rs. 9.94 lakhs | Rs. 11.72 lakhs || Diesel | Rs. 10.24 lakhs | Rs. 11.27 lakhs | Rs. 13.59 lakhs |

As it is clear, the Hyundai i20 petrol variant has a greater upfront cost advantage of up to Rs 1.59 lakh over the diesel model. Similarly, other diesel variants of many other cars are more expensive than their petrol counterparts.

Even if costs also rely on the state of the automobile as an additional element, the upfront price gap between petrol and diesel for the same car with comparable miles travelled tends to be closed on the used car market.

Mileage Factor

When searching for the ideal car, Indians become fixated on the mileage. In this regard, diesel engines typically excel above petrol ones. If we look at the Hyundai i20 specifically, the ARAI claims that the manual petrol version gets 20.3 km per litre while the diesel version gets 25.2 km per litre. This equals a difference of approximately 4.9 kmpl.

Let’s say you use your Hyundai i20 to commute around 30km daily with fuel prices being constant. With the i20 petrol, your cost of running would be ₹ 143.19 per day (based on a petrol price of Rs. 96.89 per litre), while the running cost with the i20 diesel would be ₹ 106.95 per day (based on a diesel price of Rs. 89.84). 

This translates to a monthly expenditure of ₹ 4,295.70 for petrol and ₹ 3,208.50 for diesel. In essence, the diesel variant will save you ₹ 1,087 per month and around ₹13,044 in a year.

Maintenance and Servicing Cost

Another important aspect to take into account before selecting your chosen fuel type is the cost of service and maintenance. Diesel engines don't use spark plugs as petrol engines do; instead, they just use compression to ignite the fuel. As a result, the forces placed on the components are very strong.

This is just one of the many causes of the high wear and tear experienced by diesel vehicles. Additionally, because the cost of the parts used on a diesel engine is often higher than that of a petrol engine, the overall cost of service for a diesel engine is also normally higher.

A diesel vehicle's maintenance costs are around 50% more than those of a petrol vehicle.

To have a better idea about this, let us take the example of the Hyundai i20 yet again. The service cost of the petrol and diesel variants of the Hyundai i20 for 4 years are detailed below:

Hyundai i20 Maintenance Charges

| Year | Diesel | Petrol ||-------------|------------|------------|| 1st Year | Rs.2,006 | Rs.1,348 || 2nd Year | Rs.3,291 | Rs.1,638 || 3rd Year | Rs.4,377 | Rs.3,952 || 4th Year | Rs.5,471 | Rs.3,818 || 5th Year | Rs.4,695 | Rs.3,823 || Total Costs | Rs. 19,840 | Rs. 14,579 |

For the petrol fuel type Hyundai i20 after 5 years, the total operating expense for service is Rs. 14,579 and for the diesel fuel type model, Rs. 19,840. The diesel Altroz turns out to cost Rs 5,261 more annually than the petrol model. As a result, the fuel savings more than made up for the increased servicing expenses.

Car Insurance Premium

The cost of insurance is another important factor. According to the trend, insurance rates for diesel automobiles are typically higher over time with a little greater risk level covered than for petrol cars.

Expect the total insurance premium to increase by Rs 10,000 over the course of 7 years for cars where the ex-showroom price difference is up to Rs 50,000.

Expect the insurance premium to be Rs 20,000 higher over the course of 7 years for cars where the ex-showroom price differential is between Rs 1.25 lakh and Rs 1.5 lakh.

Overall Difference between Diesel and Petrol

The easiest way to sum up the petrol vs. diesel argument is to use a real-world example.

Therefore, let's take the Hyundai i20 Magna base model as an example, which has an on-road pricing of Rs. 8,08,952 for the base petrol version and Rs. 9,63,704 for the base diesel version.

The upfront price difference paid in favour of the petrol works out to be Rs. 1,54,752.

Let's now determine how many years it would take to recoup the upfront cost if you choose the diesel version. With a Hyundai i20, you can anticipate the following operating costs for the petrol and diesel models, respectively, assuming an average driving distance of 10,000 kilometres:

Hyundai i20 Cost of Running for 5 Years

| Yearly Running | 10,000km | 10,000km ||-----------------------------|---------------|---------------|| Fuel Efficiency | 20.2 kmpl (Petrol) | 25.3 kmpl (Diesel) || Fuel Price | Rs. 96.89 | Rs. 89.84 || Yearly Fuel Costs | Rs. 48,396.60 | Rs. 35,509.88 || Total Fuel Costs in 5 years | Rs. 2,41,983 | Rs. 1,77,549 || Total Maintenance Costs | Rs. 14,579 | Rs. 19,840 || Total Costs After 5 Years | Rs. 2,56,562 | Rs. 1,97,389 |

You would need to own the automobile for 13 years before you could offset the difference in the on-road price between diesel and petrol (Rs 1.54 lakh) that you paid upfront.

This exceeds Delhi's legal registration threshold for diesel automobile ownership, thus selling your diesel vehicle is necessary before you may begin to gain. You will start to experience lower ownership costs for your diesel automobile compared to a petrol car if you don't live in Delhi.

The average car ownership term is typically five years, which again disadvantages diesel vehicles.

CarBike360 Says

Diesel cars are the more expensive alternative to choose if you intend to travel less than 10000km per year and own the car for less than 5 years.

However, if you drive more than 15000 km per year and live in a state that permits diesel car ownership after 10 years, diesel cars will ultimately be more cost-effective for you.

Therefore, diesel engines are the ideal option for long-distance drivers, whilst petrol is undoubtedly the wiser choice for individuals who enjoy taking their car out sometimes.