Delhi fuel ban: 3 hacks to avoid losing money on your old car

With Delhi’s fuel ban now in force, diesel vehicles over 10 years old and petrol vehicles older than 15 can no longer be refueled. If you own an affected vehicle, don’t panic—there are still a few routes you can take. Here’s everything you need to know to navigate your next steps.

'Congratulations Delhites, your cars have been demonetized', netizens respond to fuel ban for old cars
(Representational image/PTI)

The fuel ban has sent tremors down Delhi’s spine as many are forced to sell their cars, while luxury cars have no option but to dump them at throwaway prices. The End-of-Life (EoL) rule bans 10-year-old diesel and 15-year-old petrol vehicles from refuelling in the national capital. The rule was enforced on July 1 and left many enraged. Sushant Sareen (@sushantsareen), Senior Fellow, Observer Research Foundation (ORF), took to social media and called this rule as “ Single most stupid rule. Scrap a polluting vehicle, even if it’s 1 year old; allow a nonpolluting vehicle even if it’s 20 years old. Enforce pollution norms strictly. But scraping vehicles just on age of vehicle is a brainless thing to do. Since it’s NGC dictated, no one wants to challenge this foolishness.”

With Delhi’s new vehicle regulations now in effect, owners of old cars face strict compliance requirements. If you’re wondering, “What are the next steps for my old car in Delhi?” we’ve got you covered. 

Scrappage Policy

Under the Vehicle Scrappage Policy, owners of end-of-life (EoL) vehicles can surrender their cars at Registered Vehicle Scrapping Facilities (RVSFs), where the vehicles are dismantled and recyclable materials are salvaged in an environmentally sound manner. Once scrapped, owners receive a Certificate of Deposit (CoD), which can provide financial incentives, including up to a 25% discount on motor vehicle tax for new private vehicles and a 15% discount for commercial vehicles. Additionally, the scrap value offered ranges from Rs 50,000 to Rs 3 lakh, depending on the vehicle’s weight and condition. One has to keep in mind that this may be an easier option, but it has low resale value. The CoD can then be used to claim tax benefits and other incentives when purchasing a new vehicle.

Sell outside Delhi NCR

Selling an EoL vehicle outside Delhi-NCR involves transferring ownership to buyers in states where age-based bans are less stringent. While this approach enables owners to recover some value from their vehicles, but presents logistical challenges, including the need to transport the vehicle to another state and complete the re-registration process per local regulations and pay road tax in the new state.

Convert to CNG

Converting an older vehicle to run on Compressed Natural Gas (CNG) presents a viable option for owners in Delhi seeking to extend their vehicle’s operational lifespan, particularly given existing fuel bans. This process involves retrofitting the vehicle with an ARAI-certified CNG kit, which, upon successful completion of required emission and fitness tests, allows the vehicle to operate beyond its designated EoL age limit. CNG conversion is relatively cost-effective, typically ranging from Rs 50,000 to Rs 1 lakh, and offers long-term savings as CNG is cheaper than petrol or diesel. This conversion also aligns with Delhi’s broader agenda for cleaner fuels. However, not all vehicles, especially older diesel models, are compatible with CNG kits, and the process must be carried out by certified installers. Limited CNG station availability is another challenge to consider.

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This article was first uploaded on July three, twenty twenty-five, at thirty-one minutes past eleven in the morning.
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