If we don't remove the subsidy, the whole economy will be affected. The oil subsidy is approaching 2 lakh crores (Rs.200000,00,00,000/-) Allowing diesel cars to run is absolutely criminal. The government is simply being stupid. If it cannot differentiate between transport & private cars & it cannot, the easiest way is to ban private diesel cars completely. No other way of going about this.
Jaguar has a diesel engine while two wheelers all have petrol engines. Diesel is subsidised heavily while Petrol is not.