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Petrol And Diesel Prices Set To Increase From April 2020; Here’s Why

Olga Robert

This week, Environment Minister Prakash Javadekar informed the Rajya Sabha that the sale of fuel conforming to stringent BS-VI emission norms has started in Delhi. Moreover, he said that on recent checks of a few fuel stations, it was noted that the pricing of regular BS-IV and BS-VI fuels were the same.

The Upper House was also informed that the sale of BS-VI compliant vehicles in India would begin in the next year.

Bharat Stage (BS) emission standards are instituted by the government to regulate air pollution caused by motor vehicles. It was first introduced in 2000 and based on European regulation standards.

The BS-IV emission norms were placed in April 2010 in 13 major cities. The whole country adopted it April 2017. In April 2016, it was decided to skip the BS-V norms and adopt BS-VI by 2020. Sale and registration of motor vehicles conforming to emission standard BS-IV in India have been banned in India by the Supreme Court, starting 1 April 2020.

State-run fuel retailers have had to upgrade their refineries to accommodate the production of cleaner fuel. A Livemint report citing two unnamed officials said that these oil companies will have to pass the burden of added costs to the customers, as India sets to implement BS-VI emission norms, that are equivalent of Euro VI, from 1 April 2020.

These fuel retailers have spent over Rs 30,000 crores to improve their facilities.

The report further said that the price increase on petrol and diesel rates will be somewhere between a few paise to a maximum of Rs 2 per litre and in the form of a special cess or duty. The ultimate decision will, however, be subject to government approval.

The increase in price will also be decided closer to the date of implementation of the BS-VI norms.

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