Mumbai: Indian Oil CMD (Chairman and Managing Director) Sanjeev Singh said on Friday that the state-run fuel retailer is ready to supply BS-VI fuel from April 1 and that there will be only a marginal increase in retail prices. The oil marketing company (OMC) has already spent over Rs 17,000 crore on upgrading its refineries to produce BS-VI petrol and diesel, a senior company executive had said on February 27.
Without detailing 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 sulphur content of only 10 parts per million (ppm) as against the present 50 ppm." On being told that certain media reports have claimed that OMCs will have to increase prices by 70-120 paise a litre, Singh said that it is not possible to arrive at such a weighted average, given the complexities of each refinery. However, he added that the price hike will not be a burden on consumers. "But let me assure you, we will not be burdening the consumers with a steep hike," Singh said.
The Indian Oil CMD said that oil marketing companies (OMCs) have invested a total of Rs 35,000 crore on upgrading refineries to prep them for BS-VI compliant fuel. Earlier this week, BPCL, which is slated to go for privatisation, said that it had invested Rs 7,000 crore on the same. Singh said that Indian Oil switched to BS-VI fuel production a fortnight ago and all its depots and containers are ready now. However, he added that in some remote locations, where the intake is very low, it will take some more time to switch. However, he added that the company is planning to drain out the entire BS-VI stock and replenish the new fuels at such locations.
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