Oil firms may have to import green fuel

With the April 1 deadline for complying with Bharat Stage-III fuel standards closing in, oil marketing companies are likely to import the green fuel to meet a part of the demand in 11 cities.

It is believed that the local production of Bharat Stage-III fuel will not be enough.

The largest public sector oil marketing company, Indian Oil Corporation (IOC), had floated a tender to meet the fresh demand for Bharat Stage-III fuel. The response has been inadequate so far.

IOC had planned to import 185,000 tonnes of Euro-III grade diesel to meet the deficit.

Explaining the lack of response to the tender, the company said, "There were just two offers, and both were not meeting the required specifications."

The 11 cities where the use of Bharat Stage-III grade ultra-low sulphur fuel will be made mandatory include Delhi, Kolkata, Mumbai, Chennai, Bangalore, Hyderabad, Pune, Ahmedabad, Surat, Kanpur and Agra.

An IOC spokesperson said its refineries in Panipat and Mathura would be in a position to produce Euro III high-speed diesel (HSD) and motor spirit (MS) by January 15. Its Barauni, Guwahati, Digboi and Bongaigaon refineries will be able to produce Euro II MS and HSD by January 1, 2004.

Its Haldia plant will start producing BS-II fuel by January 15 and Euro III diesel by January 15. At Koyali and Panipat, BS-II motor spirit is be available since January 1, and Euro II HSD will be available from by January 15.

Bharat Petroleum's Mumbai refinery will start producing BS-III HSD and MS from February 1. Its Numaligarh refinery will produce BS-III fuel from January 1.

Hindustan Petroleum Corporation's Mumbai refinery will not be able to deliver before April.Its Viskhapatnam refinery will be producing BS-III Motor Spirit and diesel by January-end.