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 encouraging a shift to EVs. This cess is one such fiscal proposal that adds an additional cost to purchasing new ICE vehicles," a senior transport department official told HT. The move will increase on-road prices of conventional vehicles and make electric vehicles relatively more attractive to buyers. The green cess first appeared in Delhi's EV Policy 2020, which formally expired in August 2023 but has been extended until March 2026. The proposal to expand the levy featured in an earlier draft of the new policy as well, but many of the new proposals were since dropped. "A final decision will be taken by the cabinet," the official said. Electric vehicles account for 12-14% of all vehicle registrations in Delhi each month, according to data from the central VAHAN portal. htc...