IOC proposes dual pricing of petro products

 "A dual pricing policy can be attempted by selling fuel for two-wheelers at a lower price and for four-wheelers at the import parity price," Sarthak Behuria, chairman of IOC, said.

 He said premium fuel should be sold on import parity price, and there should be relaxation in the product specification to take advantage of the differential between low sulphur and high sulpur fuel.

 "As an immediate measure, the government should look at rationalising the ad-valorem duty on imports of crude oil. As a long-term measure, substitute fuel, including blended ethanol, should be encouraged," he said.

 Citing the examples of China, which has resorted to rationing and announced three price hikes this year and was thinking of imposing a fuel tax, and Thailand, which has abolished all fuel subisidies, he said similar measures could also be tried in India.
IOC had lost Rs 1,800 crore, Bharat Petroleum Rs 1,300 crore and Hindustan Petroleum Rs 1,050 crore due to non revision of fuel prices in the first quarter of the current fiscal.