Euro-IV switch to make fuel costlier from April 1

NEW DELHI: Petrol and diesel is set to become costlier in 13 major cities including Delhi, Mumbai, Kolkata and Chennai from April 1 when these cities will move for cleaner auto fuel (Euro-IV).

The oil ministry is considering a proposal to raise pump prices of Euro-IV petrol and diesel to recover about Rs 15,000 crore spent by state-owned oil companies in upgrading their refineries, a senior oil ministry official said.
“We are in consultations for differential pricing of Euro-IV fuel,” oil secretary S Sundareshan told reporters on the sidelines of the 6th Asia Gas Partnership Summit.

As per oil ministry officials, the price increase will be marginal and will remain below Re 1 a litre. But no one could give a definite numbers.

Oil minister Murli Deora will launch the Euro-IV fuel on Wednesday, an Indian Oil Corporation (IOC) official said. The 13 cities will switch from the Euro-III grade of auto fuel to the Euro-IV (or Bharat Stage-IV) auto fuel from April 1.

State-owned refiners such as Indian OilCorp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have already spent about Rs 40,000 in upgrading their refineries to produce Euro III and Euro IV fuel. Capital expenditure on upgrading refinery to Euro-IV alone was about Rs 15,000 crore, an oil ministry official said requesting anonymity.

As per a direction by the Supreme Court, oil companies are to sell higher grade (Euro-IV) petrol and diesel in 13 major cities and Euro-III grade fuel in rest of the country from April 1, 2010. While oil companies are ready to supply Euro-IV fuel from April 1, some of their refineries are not in position to supply of Euro-III fuel. They will upgrade refineries in a phased manner. Euro IV fuel is cleaner having a maximum of 50 parts per million of sulphur in petrol and diesel. But Euro-III fuel have a maximum of 350 parts per million of sulphur.