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Delhi's Fuel Ban Impact

Jul 2, 2025

Overview

A Delhi resident was compelled to sell his 10-year-old Mercedes-Benz ML350 for a fraction of its value due to a new government fuel ban on older vehicles. The policy targets pollution by restricting refueling of diesel vehicles over 10 years old and petrol vehicles over 15 years old, leading to widespread impacts among car owners.

Delhi’s New Fuel Ban Policy

  • Delhi government, effective July 1, bans fuel for diesel vehicles older than 10 years and petrol vehicles older than 15 years.
  • The rule follows an order by the Air Quality Management Commission to combat air pollution.

Case of Varun Vij and His Mercedes-Benz

  • Varun Vij, a Delhi resident, bought a Mercedes-Benz ML350 in 2015 for Rs 84 lakh.
  • Despite its excellent condition and only 1.35 lakh km driven, he was forced to sell it for Rs 2.5 lakh due to the new regulation.
  • The car required minimal maintenance during its decade of use, limited to tyre replacements and servicing.
  • Vij and his family had strong sentimental attachment to the vehicle, recalling family trips and special memories.

Impact on Car Owners

  • Many owners of 10-year-old vehicles in Delhi are seeking to sell their cars because of the ban.
  • Vij found it difficult to find a buyer, even at a drastically reduced price, due to the lack of options for continued legal use.
  • Owners are unable to renew old diesel vehicles under the current policy.

Shift to Electric Vehicles

  • Facing the new restrictions, Vij purchased a Rs 62 lakh electric vehicle.
  • He expressed hope to use his new electric vehicle for at least 20 years, unless future policies introduce similar limitations.

Recommendations / Advice

  • Car owners in Delhi should review the age of their vehicles and consider transitioning to compliant models, especially electric vehicles, to avoid policy-driven losses.
  • Monitor government announcements for any changes or extensions to the fuel ban policy.