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State-run oil firms will supply Euro-IV grade petrol and diesel in 13 big cities and Euro-III complaint petrol in rest of the country from April 1 but supply of the cleaner diesel to rest of the country may be delayed by three to six months.
"Euro-IV petrol and diesel will be supplied for sure in 13 designated cities (that include Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad and Ahmedabad) from April 1," Petroleum Secretary R S Pandey said.
As per fuel specifications committed to the Supreme Court, oil firms are to sell petrol and diesel meeting the stringent Euro-IV specifications in 13 major cities from April 1 while Euro-III grade fuel is to be supplied in rest of the country. However, supply of Euro-III fuel may be delayed as some refineries may not be upgraded in time, he said.
Efforts are being made to ensure Euro-III petrol to be supplied in rest of the country and some deferment sought for beginning sale of diesel of same grade.
Pandey said some of the refineries would continue to produce Euro-II grade fuel beyond April, which cannot be exported due to inland location of the units. And so, it would be logistically difficult to manage three grades of fuel.
"The Petroleum Minister (Murli Deora) has called a review meeting this week to assess the situation and a clear picture would emerge after that," he said.
Since some refineries of Indian Oil and Hindustan Petroleum would not have upgraded to produce cleaner fuel by then, the three state-run fuel retailers are seeking extension in the deadline for supply of Euro-III fuel by 3-6 months.
IOC's Barauni refinery in Bihar and Digboi and Guwahati units in Assam would commission facilities to produce Euro-III compliant diesel by June/July and supplies can begin in the region only in October.
Its Koyali unit in Gujarat was one month behind while Hindustan Petroleum Corp's Mumbai and Vizag refineries faced up to two years delay in commissioning facilities to produce Euro-III grade fuel. Chennai plant and Numaligarh refinery also faced between six to 10 months delay.
"We are asking the petroleum ministry for a six month extension in deadline for the North-East region and a three-month deferment in the April 1 deadline for the rest of the country," IOC Chairman Sarthak Behuria said.
"There are a marketing, logistics and infrastructure issues involved. Once refineries are ready, you need tankages to store them and trucks to transport them," Behuria said. Besides, there is also an issue of dealing with the Euro-II grade fuel that the refineries produce till the time the plants are upgraded to produce higher grade fuel.
The Euro IV standard specifies a maximum of 50 parts per million of sulfur in petrol and diesel. Euro-III fuel specifications call for a maximum of 350 parts per million of sulfur will be sold in the rest of the country.