Oil refineries will need to invest Rs80,000 crore in upgrading petrol and diesel quality to meet cleaner Euro-IV/V fuel specifications by 2020. Petrol and diesel meeting Euro-IV or Bharat Stage (BS)-IV specifications are to be supplied throughout the country by April 2017 and BS-V grade fuel by April 1, 2020, said the report of the Standing Committee on Petroleum and Natural Gas tabled in Parliament on Thursday.
While BS-IV fuel is to be supplied throughout the country in phases by April 1, 2017, the Oil Ministry is “considering a proposal to switch over directly from BS-IV to BS-VI auto fuels by April 1, 2020 instead of stepwise upgradation from BS-IV to BS-V and then BS-V to BS-VI.” BS-IV petrol and diesel contain 50 parts per million (ppm) sulphur, BS-V and BS-VI grade fuel will have 10 ppm sulphur.
“In order to meet the fuel quality in line with the Auto Fuel Policy 2003, the oil refineries had upgraded its technology and invested over Rs 35,000 crore for production and supply of BS-III/IV gasoline (petrol) and diesel fuels.”