The prices of petrol and diesel will increase by Rs 0.50 and Rs 0.26 a litre, respectively, from April 1 in 13 big cities that switch to cleaner Euro-IV grade fuel.
Thirteen big cities — Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore, Lucknow, Kanpur, Agra, Surat, Ahmedabad, Pune and Sholapur — will move from Euro-III grade fuel to Euro-IV from tomorrow. Rates in different cities will depend on local taxes.
The rest of the country will switch from Euro-II specification fuel to Euro-III in phases, beginning with Goa from tomorrow. The process will be phased over the next 5-6 months. Euro-III petrol will cost Rs 0.26 a litre more and same grade diesel Rs 0.21 a litre. Euro-IV and Euro-III petrol and diesel are superior fuels and the oil refineries have made huge capital investments, besides incurring higher operating costs, in production of these fuels.
The oil marketing companies had, therefore, been permitted to marginally increase the retail price, said a petroleum ministry release. Oil companies had invested Rs 40,000 crore in putting up facilities to produce cleaner fuel and the prices had been increased to make up for the cost. The introduction of cleaner auto fuel is aimed at reducing environmentally harmful emission of pollutants like sulphur and benzene.
A rise in prices on account of Euro norms would, in effect, be the second price increase for consumers in less than two months. Oil marketing companies had raised petrol and diesel prices by Rs 2.71 and Rs 2.55 a litre, respectively, from February 27, after an increase in excise duty on petrol and diesel and the restoration of five-per-cent duty on crude oil.