by Editor News
Petrol and diesel prices will also rise from April 2020 as fuel retailers are looking to pass on the higher cost of producing BSVI fuel.
With BSVI norms coming into action from April 2020, the government has said that the upgraded fuel for BSVI will be available by March in specific cities. The automakers are all set to meet this deadline and the changes that have to be made to the cars to be able to achieve the BSVI emission standards. The process will also raise the prices of cars. However, a report in the Hindustan Times says that petrol and diesel prices will also rise from April 2020 as fuel retailers are looking to pass on the higher cost of producing BSVI compliant fuel. The report says that two senior officials at the fuel companies stated that this hike in the fuel is due to the retailers’ investments in upgrading their refineries to produce the cleaner fuel.
Refineries have spent more than ₹ 30,000 crores to upgrade its facilities in accordance with the BSVI fuel before the updated emission norms kick in on April 2020. The rise in the price is expected to be anywhere between a few paise to a maximum of ₹ 2, which is likely to be charged as a special cess or duty. However, discussions continue to be held with government officials. In fact, within hours of the announcement of the Union Budget, there was a hike made in cess on fuel prices, petrol prices shot up by Rs 2.50 per litre while diesel prices went up by Rs 2.30 per litre.
Another hike then would certainly dampen buyer sentiment. Automakers have seen sales slide over the past couple of years and are looking forward to positive sentiments from the market and even the government, by means of incentives and lowered GST. For the time being though, there seems to be no relief.
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