The government is considering pricing Euro-IV compliant petrol and diesel that is to be sold in 13 big cities from April 1, at marginally higher price than currently supplied lower-grade fuel, Oil Secretary S Sundareshan said.
"We are in consultations (with companies and stakeholders) for differential pricing of Euro-IV fuel," he said.
He, however, declined to give details. The Euro-IV grade petrol and diesel that is to be sold in 13 designated cities including Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Ahmedabad from April 1, may be priced Rs 0.10-0.20 a litre more than current rates.
The higher price Euro IV fuels is being considered to compensate oil companies for the investment they made in upgrading their refineries. So, as to produce cleaner fuel IOC, BPCL and HPCL have together invested about Rs 40,000 in upgrading their refineries to produce euro III, IV fuels.
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.
"Supply of Euro-IV fuel is no problem...companies already started supplied Euro-IV fuel in some places and from April 1 Euro-IV petrol and diesel will be sold in all the 13 cities," he said.
However, supply of Euro-III fuel is being phased as some refineries have not upgraded in time. The Euro IV standard specifies a maximum of 50 parts per million of sulphur in petrol and diesel.
Euro-III fuel specifications call for a maximum of 350 parts per million of sulphur will be sold in the rest of the country.
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