Motorists may have to pay more for petrol and diesel following the government's move to switch over from Bharat Stage IV emission norms to BS-VI norms by 2020.
According to estimates by Indian Oil Corporation Ltd (IOCL), the country's largest refiner, the cost of production of petrol might go up by Rs1.4 a litre and of diesel by 63 paise.
The petroleum behemoth will have to spend Rs21,000 crore to upgrade its six refineries to ensure that the petrol and diesel produced by them are compatible with BS-VI norms. It includes Rs7,000 crore for upgrading fuel quality from the existing BS-III to BS-IV and another Rs14,000 crore for upgrading the quality to BS-VI.
Earlier this month, the Indian government decided to move over from BS-IV to BS-VI emission norms (corresponding to Euro-VI norms) by April 2020. Indian refiners, who currently supply BS-III compatible fuel in most parts of the country, and BS-IV compliant fuel in major cities, will find the task of switching over to BS-VI quite challenging.
Source : BS Motoring
