Cleaner petrol, diesel to cost more from April 1

NEW DELHI: Thirteen cities including Chennai, Bangalore and Hyderabad may witness oil price hike of 41 paise per litre on petrol and 26 paise per litre on diesel with the introduction of cleaner Euro IV grade fuel from April 1, Petroleum Secretary S Sundareshan said here on Wednesday.“The introduction of Euro IV is going to cost the oil marketing companies 41 paise per litre on petrol and 26 paise per litre on diesel. This is not on the basis of capital expenditure that they have incurred for making these upgradations but purely on the principle which we are following to bring domestic rates to international parity”, he said while speaking at the launch of Bharat Stage-IV fuels here.The 13 major cities which would switch over to Euro-IV from April 1 are Delhi and NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, Surat, Ahmedabad, Kanpur, Agra, Solapur and Lucknow.The introduction of Euro-IV fuel would improve the quality of air and will help in reducing the air pollution as the dangerous Sulphur content in the fuels would be reduced to 50 parts per million (PPM). This would in turn result in the reduction of carbon dioxide, nitrogen oxide, carbon monoxide and suspended particulate matter during fuel combustion that is emitted into the atmosphere.The Petroleum Secretary said that if the government did not take any hard decision, the under recoveries of oil marketing companies would slip from the current Rs 45, 000 crore to the order of Rs 70,000 crore by 2010-11.The Ministry of Petroleum is pushing for increasing auto fuel price so that the cost of supplying cleaner fuel does not add to the current Rs 6 per litre loss on selling petrol and Rs 4.06 per litre loss on diesel for the oil companies.The higher price for Euro-IV fuels is on the anvil to compensate the oil marketing companies for the investment that they have made in upgrading their refineries to Euro-IV standards.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s