The countdown for implementation of the Bharat Stage IV norms has begun and oil companies are set to introduce cleaner fuel to the 13 cities upgrading to the new and more stringent emission norms.
The introduction of BS IV-grade petrol and diesel in these cities also implies a marginal hike in fuel prices. Ultra-low sulphur petrol and diesel will get dearer by 0.41 paise and 0.26 paise respectively. This will be the second hike in fuel prices in quick succession following the earlier one in February, after the Union Budget.
Apart from Mumbai, Delhi/NCR, Kolkata, Chennai, Bangalore, Hyderabad, Pune, Kanpur, Ahmedabad, Surat and Agra (all BS IV cities), other cities were also to be upgraded from BS II to BS III fuels in a phased manner, starting April 1. However, the government has now extended the deadline for BS III fuels to October 1. When this happens, expect a hike in BS III fuel prices as well.
The BS IV after-effects don’t stop here. Car manufacturers are also planning a price hike in the range of 1-2 percent from April 1 to compensate their investment to make their vehicles BS IV-compliant.