Euro IV fuel in India
at Thursday, March 25, 2010
| Delhi shifts to Euro IV fuel tomorrow, others on Apr 1 |
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| Induction of clean fuel may lead to upward revision in fuel prices The national capital will shift to cleaner Euro IV compliant auto fuel from Wednesday, becoming the first city in the country to use the fuel. The induction of clean fuel courtesy Euro IV might lead soon to a revision of auto fuel price after this kind of fuel is sold in 12 other big cities from April 1. The government is thinking on a differential pricing for Euro IV fuel. "We are thinking on it. We will soon take a view," Petroleum Secretary S. Sundareshan told reporters at the 6th Asia gas partnership summit in New Delhi on Monday. The IndianOil is launching fuel that meets Euro IV emission norms from March 24, said an IndianOil official. The three oil marketing companies (OMCs) IndianOil, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation Limited will start selling Euro IV fuel from April 1 in 12 other cities, which include Mumbai, Hyderabad, Chennai, Kolkata and Bangalore. At the same time, other cities will see Euro III fuel being available in a phased manner till October 1. "The tankers are ready and the pipelines have been flushed to implement the Euro IV compliant fuel," said Mr. Sundareshan. Country's state owned OMCs have spent nearly Rs 13,000 crore to upgrade their refineries to make them Euro III and IV compliant. Earlier in 2005, when fuel with Euro III norms was introduced, prices of petrol were hiked by 30 paise per litre and diesel by 24 paise. In addition, petroleum secretary has said that government will soon take a decision to increase the price of gas produced from nominated blocks. "I am told by the minister (petroleum) that the issue is in the final stages of decision making in the government. We expect a decision soon," said Mr. Sundareshan. Price of gas supplied to companies ONGC and OIL from its nominated gas fields may be hiked to $4.2 per million British thermal unit (mBtu) from prevailing $1.82 per mBtu. Gas prices for power and fertilizer sectors will be done in three tranches over next three years. But for small and medium enterprises apart from city gas distributors, the hike may be immediate and in one go. "Over the next few months we will explore further how to make all parts of the country get gas at approximately the same price, Mr. Sundareshan said Gas being sold at administered rates is much lesser 1 than market price and below cost of production. This price is applicable to fields given on nomination basis prior to new exploration and licensing policy (NELP). About 97 per cent of ONGC's total gas production is sold under administered price, while in case of OIL it is approximately 85 per cent. Financial Chronicle, New Delhi, March 23, 2010  0 commentsPopular Posts
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