BS-VI costs: oil companies will increase rupee rates 1 once in April
NEW DELHI: State fuel retailers will increase fuel by 50 paise to Re 1 per liter once in April to recover investments made to produce Bharat Stage-VI gasoline and diesel (BS-VI, similar to the Euro-VI standard) .
I don't think the premium (for BS-VI) is large enough to be staggered, said Sanjiv Singh, president of the country's largest refinery and fuel retailer. Indian oil He said Thursday after announcing that the company's net profit tripled in the quarter of December to Rs 2,339 crore.
Pump prices are linked to gasoline and diesel rates in regional shopping centers (Singapore and Dubai), as well as the rupee-dollar exchange rate. Since the international reference prices for equivalent BS-VI fuels are higher, national rates will also have to increase. We are in the process of resolving the implications of supplying BS-VI fuel as of April, Singh said.
State-owned companies appear to have received an approval from the parent Petroleum Ministry for a single increase, using the window provided by benign reference prices and with no state elections in sight. Crude prices are in the comfort zone and product prices are expected to face deflationary pressure as the coronavirus casts a shadow over trade, air traffic and the revival of global economic growth in general.
India is ready to jump from BS-IV to standard BS-VI, which has almost the same emission level, or better in some aspects, than a CNG () vehicle, from April 1. Delhi had changed the deadline to BS-VI two years before, while the entire NCR (region of the national capital) covering the neighboring cities in UP and Haryana had been obtaining cleaner fuels since October 2019.
Singh said that the IOC refineries have started producing BS-VI grade fuel and that it will reach deposits across the country next month. We are very attached to the deadline of April 1, he said. The company has invested Rs 17,000 crore to improve its refineries, while the total investment made by all state refineries is linked to Rs 30,000 crore.
“The change to BS-VI fuel supplies by the IOC's commercialization and retail network is also in full swing throughout the country. Based on current progress, approximately 80% of the 121 IOC bulk storage terminals/warehouses will convert BS-IV fuels to BS-VI fuels before January 31. In the markets served by them, 100% BS-VI fuel dispensing in gasoline/diesel stations is likely to be achieved at the end of February, ”said Singh. The IOC is confident of supplying BS-VI fuels throughout India long before the deadline, he added.