New Delhi:  The Centre for Science and Environment on Wednesday demanded an additional duty of Rs 1.62 lakh on diesel cars to prevent the misuse of subsidised fuel for luxury.

“The cars are majorly owned by financially able groups. Hence, there is no need of subsidies for them. There should be additional duty on diesel cars to equalise the subsidy benefits given on diesel and petrol,” CSE said.

The NGO also extended support to the recommendations of the Planning Commission's Kirit Parikh Committee of an additional Rs 81,000 equaliser excise tax for small cars with engines of less than 1,400 cc should be implemented in the Budget for 2012-13.

"This amount should be doubled for bigger cars for equitable sharing of burden," CSE added.

With increasing trend of consumers attracted towards diesel cars, it is really important for the government to raise the additional subsidy so that it could minimize the heavy losses made on the public exchequer.