Cleaner fuel will cost 40p more from April 1

Consumers will have to fork out up to 40 paise a litre more for motor fuels in 13 cities that will upgrade to Euro-IV quality. Petroleum secretary S Sundareshan on Monday confirmed that the government was considering a differential pricing for Euro-IV petrol and diesel but declined to say by how much the prices would be higher from Euro-III fuels being sold now.

Sources said an increase of 10-20 paisa would allow state-run oil firms to recover the investments made in creating facilities for making Euro-IV fuels. Another 14-18 paisa a litre increase would come from a revision in dealer margin, due from April as per the formula laid down by the oil ministry. Euro-IV fuels will be introduced in Delhi from March 24.

Thirteen major cities, including the four metros as well as Bangalore, Hyderabad and Ahmedabad are to graduate to Euro-IV from April 1. The remaining cities will move to Euro-III, except some areas in east and south that will get the fuels in phases. Sundareshan said, "Supply of Euro-IV fuel is no problem... companies have already started supplying Euro-IV fuel in some places and from April 1, Euro-IV petrol and diesel will be sold in all the 13 cities."

State-run IndianOil Corporation, Bharat Petroleum and Hindustan Petroleum have together invested about Rs 40,000 crore in upgrading their refineries to produce Euro-III and Euro-IV fuels. Euro-IV standards specify a maximum of 50 parts per million of sulphur in petrol and diesel. Euro-III specifications allow a maximum of 350 parts per million of sulphur.