Consumers may feel the pinch of higher fuel prices in coming months as the government is considering a proposal to allow oil marketing companies charge a premium on retail prices of petrol and diesel to recover their investment in producing less polluting fuel.
Public and private sector oil marketing companies (OMCs) have appealed to petroleum ministry to support a plan to raise consumer prices of auto fuels to help them recover a portion of investments made in upgrading their refineries to produce BS Stage 6 fuel.
If this proposal is accepted by the government, retail prices of petrol and diesel would come at a premium of about ₹0.80 a litre and ₹1.50 a litre, respectively for the next five years much to the discomfort of consumers.
