India’s Oil Marketing Companies (OMCs) have decided against increasing fuel prices, having completely transitioned to cleaner Bharat Stage (BS)-VI compliance of emission standards for diesel and petrol.
The decision comes as the country grapples with the Covid-19 pandemic outbreak.
Indian oil firm IndianOil, stated: “The Public Sector Undertaking OMCs have incurred capital expenditure to the tune of about Rs. 35,000 crore (£3.7m) in upgrading their countrywide refineries, pipelines and marketing distribution network to be able to usher in BS-VI fuels, directly leapfrogging from BS-IV fuels.”
The firms are expected to incur incrementally higher operating costs to manufacture the cleaner fuels but note any increase is contingent on the increase of VAT rates put in place by the state government on petrol and diesel from April 1st.