<p class="title">National oil marketer Indian Oil Corporation (IOC) on Friday said it is ready to supply low emission BS-VI fuels from April 1 and that there will be a marginal increase in retail prices.</p>.<p class="bodytext">The largest oil supplier has spent over Rs 17,000 crore to upgrade its refineries to produce the low-sulfur diesel and petrol, the company's chairman Sanjiv Singh told reporters here.</p>.<p class="bodytext">Without disclosing the quantum of price increase, Singh said, “there will definitely be a marginal increase in retail prices of the fuels from April 1 when the whole country will be run on new fuels, which will have a sulphur content of only 10 parts per million (ppm) as against the present 50 ppm.</p>.<p class="bodytext">“But let me assure you, we will not be burdening the consumers with a steep hike,” Singh said.</p>.<p class="bodytext">He said, state-run oil marketing companies (OMCs) have invested Rs 35,000 crore to upgrade their refineries, of which Rs 17,000 crore have been spent by IOC alone.</p>.<p class="bodytext">Earlier this week, the sell-off bound BPCL said it had invested around Rs 7,000 crore for the same. ONGC-run HPCL has not so far disclosed its readiness for BS-VI supplies or its capex on the same.</p>.<p class="bodytext">HPCL had said from February 26-27 it was ready with BS-VI fuels and that it would sell only the new fuels from March 1.</p>.<p class="bodytext">IOC switched to BS-VI fuel production a fortnight ago and all its depots and containers are ready now, Singh said.</p>.<p class="bodytext">However, he said some remote locations, where the intake is very low, will take some more time to switch. But the company is planning to drain out the entire BS-IV stock and replenish the new fuels at such locations, he added.</p>.<p class="bodytext">Further, it has been reported that the companies will have to increase prices by 70-120 paise a litre, but Singh said, to arrive such a weighted average is not possible given the complexities of each refinery.</p>.<p class="bodytext">He, however, asserted that the price hike will not be a burden on consumers.</p>.<p class="bodytext">We are not looking at this investment from a pure return on investment basis, but this is a national mandate and we have done it.</p>.<p class="bodytext">Having said that, all those countries that moved to low emission fuels are charging higher prices; and from April 1, our prices will also be benchmarked against Euro VI prices as against the present practice of the cost-plus model, Singh concluded. </p>
<p class="title">National oil marketer Indian Oil Corporation (IOC) on Friday said it is ready to supply low emission BS-VI fuels from April 1 and that there will be a marginal increase in retail prices.</p>.<p class="bodytext">The largest oil supplier has spent over Rs 17,000 crore to upgrade its refineries to produce the low-sulfur diesel and petrol, the company's chairman Sanjiv Singh told reporters here.</p>.<p class="bodytext">Without disclosing the quantum of price increase, Singh said, “there will definitely be a marginal increase in retail prices of the fuels from April 1 when the whole country will be run on new fuels, which will have a sulphur content of only 10 parts per million (ppm) as against the present 50 ppm.</p>.<p class="bodytext">“But let me assure you, we will not be burdening the consumers with a steep hike,” Singh said.</p>.<p class="bodytext">He said, state-run oil marketing companies (OMCs) have invested Rs 35,000 crore to upgrade their refineries, of which Rs 17,000 crore have been spent by IOC alone.</p>.<p class="bodytext">Earlier this week, the sell-off bound BPCL said it had invested around Rs 7,000 crore for the same. ONGC-run HPCL has not so far disclosed its readiness for BS-VI supplies or its capex on the same.</p>.<p class="bodytext">HPCL had said from February 26-27 it was ready with BS-VI fuels and that it would sell only the new fuels from March 1.</p>.<p class="bodytext">IOC switched to BS-VI fuel production a fortnight ago and all its depots and containers are ready now, Singh said.</p>.<p class="bodytext">However, he said some remote locations, where the intake is very low, will take some more time to switch. But the company is planning to drain out the entire BS-IV stock and replenish the new fuels at such locations, he added.</p>.<p class="bodytext">Further, it has been reported that the companies will have to increase prices by 70-120 paise a litre, but Singh said, to arrive such a weighted average is not possible given the complexities of each refinery.</p>.<p class="bodytext">He, however, asserted that the price hike will not be a burden on consumers.</p>.<p class="bodytext">We are not looking at this investment from a pure return on investment basis, but this is a national mandate and we have done it.</p>.<p class="bodytext">Having said that, all those countries that moved to low emission fuels are charging higher prices; and from April 1, our prices will also be benchmarked against Euro VI prices as against the present practice of the cost-plus model, Singh concluded. </p>