Explained: Why you will have to pay more for petrol, diesel from April 1 2020

New Delhi, Jan 31: Come April 1 2020 and consumers will have to cough more for fuel. This is because of Bharat Stage-6 (BS-VI) emission norms which would kick in from April 1 onwards.

This would mean that consumers would have to pay more for cleaner fuel, say oil companies.

What will the hike be:

While the exact number has not been worked out as yet, oil companies have indicated that the hike could be anything between 50 paise to Re 1 per litre.

Sanjiv Singh, the chairman of the Indian Oil Corporation said that he does not think premium for BS-VI will be larger for it to be staggered. He indicated that there would be a one time hike in petrol and diesel prices when BS-VI grade fuel is rolled out.

Quantum:

Singh said that the quantum is being worked out. He said that the hike may be anything between 50 paise to Re a litre. The international benchmark price for petrol and diesel compliant with BS-VI grade is higher than BS-IV fuel. Since domestic fuel prices are directly linked to global rates, pumps prices will have to rise.

Roll out plan:

Delhi and adjoining cities were to have BS-VI supplies by April 2019 and the rest of India from April 2020. Oil firms had switched over to BS-VI grade fuels in the national capital region on April 1 2018. The same was further extended to four districts of Rajasthan and 8 in Uttar Pradesh on April 1 2019. Similar upgrades were made in Agra and 7 districts of Haryana from October 1 2019.

What is BS-VI:

BS-VI fuels are ultra clean fuels. It has sulphur content to just 10 parts per million from 50 ppm in BS-IV fuels. The emission norms in BS-VI is as good as those of compressed natural gas (CNG).