PSU Oil Marketing Companies (OMCs – IndianOil, BPCL and HPCL) have fully transitioned to BS-VI compliant petrol and diesel across the country with effect from April 1, 2020 even in the face of the constraints posed by the COVID-19 pandemic.
The PSU OMCs have incurred capital expenditure to the tune of about Rs. 35,000 cr in upgrading their countrywide refineries, pipelines & marketing distribution network to be able to usher in BS-VI fuels, directly leapfrogging from BS-IV fuels. Further, the refineries shall incur incremental operating costs on a sustained basis to manufacture BS-VI petrol and diesel with 10 parts per million (ppm) of Sulphur as against 50 ppm in BS-IV fuels earlier. Taking into consideration the CAPEX costs and the likely incremental OPEX costs, there would be some impact on the retail selling price of petrol and diesel.
Considering the current crisis brought on by the COVID-19 pandemic, the OMCs have kept the prices of petrol and diesel unchanged with effect from April 1, 2020, which were otherwise also being maintained steady.