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Oil companies switch to BS-VI fuel without raising prices; rate hike due to high state VAT: IOC

Oil companies switch to BS-VI fuel without raising prices; rate hike due to high state VAT: IOC

NEW DELHI: India has converted to the world’s cleanest petrol and diesel with out elevating costs, Indian Oil Corp (IOC), the nation’s largest oil agency, stated on Thursday.
Leapfrogging from BS-IV grade gasoline straight to BS-VI grade, equal to Euro-VI gasoline, petrol and diesel would have resulted in an as much as Re 1 per litre improve in value however oil corporations determined in opposition to passing this on to shoppers and as an alternative adjusted it in opposition to the discount warranted from worldwide oil costs plummeting to a 17-year low.
IOC additionally stated the costs of petrol and diesel haven’t been elevated regardless of value going up considerably.
Improve in gasoline costs in some states like Maharashtra, Karnataka and West Bengal by about Re 1 per litre every from April 1 has been on account of hike in state gross sales tax or VAT charges, it stated.
PTI had on Wednesday reported that oil corporations won’t elevate costs whereas supplying BS-VI grade gasoline.
In an announcement, IOC stated public sector oil corporations had incurred about Rs 35,000 crore in upgrading their countrywide refineries, pipelines and advertising distribution community to have the ability to provide petrol and diesel with 10 components per million (ppm) of sulphur as in opposition to 60 ppm in BS-IV fuels earlier.
“Bearing in mind the CAPEX prices and the probably incremental OPEX prices, there could be some influence on the retail promoting value of petrol and diesel,” it stated.
“Contemplating the present disaster introduced on by the COVID-19 pandemic, the oil advertising corporations (OMCs) have stored the costs of petrol and diesel unchanged with impact from 1st April 2020, which had been in any other case additionally being maintained regular.”
It additional acknowledged that whereas the costs of petrol and diesel have remained unchanged at Rs 69.59 per litre and Rs 62.29 respectively, charges in Kolkata and Mumbai have gone up by Re 1 a litre every due to hike in VAT charges.
Charges haven’t modified in Chennai.
Petrol in Mumbai now prices Rs 76.31 and diesel Rs 66.21 whereas in Kolkata a litre of petrol comes for Rs 73.30 and diesel is priced at Rs 65.62 per litre.
“In view of the extraordinarily risky state of affairs, the OMCs are retaining an in depth watch on international cues and the market state of affairs whereas taking pricing choices,” the assertion stated.
Oil corporations haven’t modified petrol and diesel value for over a fortnight now as they first adjusted the discount warranted in opposition to the Rs three per litre improve in excise responsibility and now are setting off the elevated value of BS-VI gasoline.
Petrol and diesel charges had been final revised on March 16.
The swap over from BS-IV to BS-VI was achieved in simply three years, a feat not seen in any of the massive economies across the globe.
India will be part of the choose league of countries utilizing petrol and diesel containing simply 10 components per million of sulphur because it appears to chop vehicular emissions which might be stated to be one of many causes for the choking air pollution in main cities.
India adopted Euro-III equal (or Bharat Stage-III) gasoline with a sulphur content material of 350 ppm in 2010 after which took seven years to maneuver to BS-IV that had a sulphur content material of 50 ppm.
From BS-IV to BS-VI it took simply three years.
India adopted a gasoline up-gradation programme within the early 1990s. Low lead gasoline (petrol) was launched in 1994 in Delhi, Mumbai, Kolkata, and Chennai. On February 1, 2000, unleaded gasoline was mandated nationwide.
Equally, BS-2000 (Euro-I equal, BS-1) car emission norms had been launched for brand spanking new automobiles from April 2000. BS-II (Euro-II equal) emission norms for brand spanking new automobiles had been launched in Delhi from 2000 and prolonged to the opposite metro cities in 2001.
Benzene limits have been lowered progressively from 5 per cent in 2000 to 1 per cent nationwide. Lead content material in gasoline was eliminated in phases and solely unleaded gasoline is being produced and bought from February 1, 2000.

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