Indian Oil Corporation (IOC), the national oil marketer, states that the BSVI fuels are ready to be supplied and a slight oil price increase can be expected from April 1.
More than INR 17,000 crore has been invested by Indian Oil in upgrading its refineries, to supply the low-emission petrol and diesel. As a result, there will be a hike in fuel price from April 1st 2020. Despite not revealing the specific amount of price increase, the Chairman of the company’ did confirm the timeline for the price hike.
“There will definitely be a marginal increase in retail prices of the fuels from April 1 when the whole country will be run on new fuels, which will have a sulphur content of only 10 parts per million (ppm) as against the present 50 ppm. But let me assure you, we will not be burdening the consumers with a steep hike,” said Sanjiv Singh, Chairman, Indian Oil Corporation.
According to Singh, state-run oil marketing companies (OMCs) have spent INR 35,000 crore to update their refinements, in which INR 17,000 crore has been invested by only IOC. BPCL has invested approximately INR 7,000 crore in the same thing. HPCL stated that it has been ready with BSVI-compliant fuels from February 26 – 27 and would start to supply only the new type of fuels from March 1.
Nevertheless, it takes some time for some remote regions to totally switch to the new fuel. Indian Oil Corporation has an intention of draining all the remaining BS-IV fuel from its stocks and refuel them with the new type of fuel in such regions soon. The fuel price will experience an increase of 70 – 120 paise per litre. Considering the fact that all the nations which have started to supply the cleaner type of fuel are also charging higher fuel cost from April 1, this marginal price hike in India is a normal thing.