Five ways to escape fuel price hike

Crude oil prices have risen 23.06 per cent in the last six months. And in India, petrol prices have risen by almost 50 per cent since January 2010, which has led to carmakers investing in more efficient vehicles and ramping up diesel engine capacity, even as oil marketing companies hint at more petrol price hikes.

With oil prices on a rise and Indian oil marketing companies wishing to hike fuel prices, car-owners could be in for some hard budgeting. Here are five ways to beat a fuel price hike.

1) Electric vehicles:

These cars (or bikes) don't use fuel; they work on regular charging at various electrical points, or outlets. No more pricey trips to the gas station; The downside is that these cars are an expensive buy.

The electric car market in India is wide open, with only one product - Mahindra and Mahindra's Reva. This is largely on account of lack of infrastructure support and the preference for cheaper cars.

Mahindra Reva costs between Rs 3.58 lakh and Rs 4.34 lakh depending on the variant, while Tata Nano, one of the cheaper cars in its mini segment, costs between Rs 1.7 lakh and Rs 2 lakh. (ex-showroom Delhi) But, if you compare the long term costs, an electric car works out cheaper. (See table below)

However, with rising environmental awareness, more automakers are looking to compete with the Reva. Nissan has confirmed that it is planning an Indian version of its successful electric car – Leaf. Hyundai, General Motors, Maruti Suzuki and Tata Motors too have indicated an interest in this portion of the auto market.

The electric car market is still nascent, which has led to minimal installation of charging points for electric vehicles.

*Mahindra Reva website

2) Shift to hybrid cars:

Didn't like that option? Then, go for a hybrid vehicle, which will consume less fuel over the same distance. At the moment, Toyota's Prius is the only option in India. But soon, Mahindra will launch its hybrid version of the Scorpio, while Honda CR-Z will have a hybrid counterpart.

Tata Motors too has entered the segment with its diesel-hybrid Indigo Manza, a hybrid bus, and a compressed natural gas (CNG) version of its Nano. Two-wheeler makers are also joining this segment, with Hero Motocorp' recently unveiling its electric car Leap, while TVS Motor Company is making the Qube.

A hybrid vehicle typically draws power from two sources – one fuel-based (Petrol/diesel) and the other electric. The vehicles use internal combustion engines and electric batteries to power the vehicle.

This market has caught up around the world. But it is still quite young in India. The Government of India too plans to give impetus to manufacturing of hybrid vehicles. It reduced excise duty on specified parts of hybrid vehicle is being reduced to 6 per cent from 10 per cent in the Union Budget 2012-13.

3) Use more public transport

Local trains, metros, buses are a great way to beat fuel hikes, as well de-congest roads and lower pollution levels.

Moreover, local governments in various cities are increasingly switching to CNG-vehicles over diesel or petrol ones; not just for state-owned public transport, but also cabs and auto-rickshaws. CNG is less polluting than carbon-based fuels such as petrol or diesel and helps keep air quality high. Additionally, the central government's Jawaharlal Nehru National Urban Renewal Missions is targeting improving urban transport facilities.

4) Walking or cycling

There is a photograph doing the rounds on social media comparing a car and a cycle, saying that one burns fuel and adds calories while the other burns calories and saves fuel. Cycling or walking are the most energy efficient ways of transport.

One of the best the ways to work our way around the monstrous petrol price hike is take to walking or biking. Most developed nations have special bicycle lanes with detailed instruction for pedestrians and riders at every corner.  India, unfortunately, has a long way to go.

But corporates and some non-governmental organizations have tried to this forward. There are a number of city-based initiatives, such as Wipro's ‘@ Wipro We Cycle' in Bangalore and Kochi, GreenBIKE in Delhi, and Visakhapatnam Municipal corporation's cycle initiative.

5) Car Pooling

If you must have a car, sharing can save you a lot of money. It also helps reduce traffic congestion and air pollution, not to mention fuel consumption! India is now even seeing websites that arrange for carpooling, according to area or the company you work at.

For example, Megacarpool is an initiative by Hindustan Infrastructure Construction Corporation, which allows Delhites to join online a set of cars on a common route. There are a few more micro carpool operators, depending on which city you live in.

Savings can be substantial – if you drive an average of 20 kms a day for 22 working days in Delhi using a petrol car that has a mileage of 12 km/litre, that translates to Rs 3000 a month and Rs35,000 per year. But sharing with just one more results in annual savings of approximately Rs 17,000. And the more the number of people, the more the savings.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.