Oil companies seek mechanism to pass through BSVI upgrade cost

State-run Bharat Petroleum Corporation (BPCL) and other oil marketing companies are in informal discussions with the government for pass-through of costs incurred over upgrading to higher emission norms.

As part of India’s attempt to curb air pollution by vehicles, fuel and automobile makers have to migrate to BS-VI from BS-IV norms from April 1.

Oil companies are expected to make BS-VI fuel available to ensure a smooth transition. BPCL will roll out BS-VI fuels at all its outlets from March. “We have represented that we should be compensated for what we have invested,” BPCL Director (refineries) R Ramachandran. He said if these investments were to be converted to litre cost, it would range between 70 paise and Rs 1.30, depending on which oil company it is. “We are aspiring that it should be built into our price.”