Shares of auto companies Tata Motors, Maruti Suzuki and Mahindra & Mahindra declined on reports that the government was planning to impose a special tax on diesel vehicles, reports said.

The Oil Ministry is planning to impose additional taxes of Rs.170,000 on small diesel cars and Rs. 255,000 on medium and large diesel vehicles like sedans and SUVs to discourage the use of diesel by private car owners.

While petrol has been decontrolled and prices move according to international crude oil price and currency fluctuations, diesel, the more politically sensitive fuel, has not witnessed a price hike since about a year. As a result of the price gap, the fuel is almost 74% cheaper than petrol.

Shares of Tata Motors were trading at Rs.239.35 down 1.5% over the previous close. It had touched a day’s high of Rs.244 and a day’s low of Rs.237. The total traded volume of the shares stood at 25.6 lakh shares on the NSE.

Shares of Maruti Suzuki were trading at Rs.1,113 down 2.8% over the previous close. . It had touched a day’s high of Rs.1,144 and a day’s low of Rs.1,110.10. The total traded volume of the shares stood at 3.28 lakh shares on the NSE.

Shares of Mahindra & Mahindra were trading at Rs.683.40 down 1.75% over the previous close. . It had touched a day’s high of Rs.691.25 and a day’s low of Rs.681.05. The total traded volume of the shares stood at 2.36 lakh shares on the NSE.