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News Brief | February 2016

At present rates, BS-VI fuel costlier than BS-IV only by 60 paise/litre

Consumers may have to pay only a small price for Bharat Stage (BS)-VI fuels, which would cost marginally more than BS-IV petrol and diesel, but all would depend on benchmark trading prices as well as rupee exchange rate at the time of rollout in April 2020.

Oil company executives said BS-VI fuels may roughly cost 50-60 paise a litre more if the current oil and currency rates were to prevail in 2020, given the wholesale price differential between the grades.

Pump prices are largely tuned to bulk prices at regional trading hubs such as Singapore and the rupee exchange rate. Other factors and taxes also contribute towards the final price.

The Auto Fuel Vision & Policy 2025 in June 2014 had recommended a 75 paise cess to recoup Rs.64,000 crore of the Rs.80,000 crore investment projected for producing cleaner fuels.

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