New Delhi: Government will raise the prices of petrol by 1.1% from Thursday in major cities that will migrate to Euro IV-compliant fuel, a government official said, to help oil firms recover investment made for plant upgrade.
“The hike will be effective from midnight tonight,” said Sudhir Bhargava, additional secretary in the federal oil ministry, adding petrol prices would be raised by Rs0.50 a litre.
Diesel price in leading cities including Mumbai would be hiked by Rs0.26 a litre, while in Delhi it will rise by more than Rs2 because of taxes.
“Delhi government has raised VAT (value added tax) on diesel, which will be implemented from tomorrow. Due to this, diesel prices will go up by Rs2.35-2.37 a litre in Delhi,” Bhargava said, in addition to the rise across major cities.
India is keen to cut emissions as Asia’s third largest economy expands rapidly and aims to catch up with fuel quality in Europe, which now follows Euro V standards.
While 13 big cities will migrate to Euro IV-compliant fuel from Thursday, the rest of the country will switch over to Euro III-compliant fuel by October.
Bhargava said the increase in fuel prices is aimed at helping the oil firms, which sell fuel at government-fixed low rates, to recover the investment of about Rs32, 0 00 crore made on plant upgrades to produce cleaner fuels.
In Delhi, petrol will cost Rs47.93 and diesel will be priced at Rs38.10 a litre, he said.