Clean fuel deadline has auto, fuel sectors worried
14 January 2010
Public sector refiners, Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation are seeking a better retail price for selling Bharat Stage III and IV auto fuels from 1 April, on which day they will have to switch to supplying cleaner fuel for vehicles on Indian roads.
For customers this means a marked rise in both vehicle ad fuel costs.
This is because manufacturers who have spent considerable sums of money on outfitting vehicles with equipment to handle the clean fuel will seek to recover their costs, which means the newer vehicle models will come with enhanced price tags.
Also diesel and petrol would cost more as refiners too would like to recoup the costs they have spent on aligning their production processes for clean fuels.
The customer would therefore have to pay more for both vehicle and fuel.
This aspect has become a major cause for worry for both, the oil and auto sectors as they get set to meet the clean-fuel deadline.