New Delhi, Dec. 28 -- Petrol and CNG vehicles are set to become more expensive in Delhi next year, with the government planning to extend a green cess currently levied on diesel cars to all combustion engine vehicles, officials familiar with the matter said.

The proposal, part of a draft electric vehicle policy expected next month, would impose a 1-2% levy on new petrol and CNG vehicles while maintaining a similar charge on diesel cars. The current 1% cess on diesel vehicles could also be raised to 2% under the new framework, the official said.

The government aims to finalise the policy by March.

"There are multiple targets and incentives in the policy aimed at discouraging people from buying petrol, diesel and CNG vehicles and encoura...