Petrol, Diesel prices have always troubled the nation. The prices are set to be hiked yet again as soon as we enter the BS6 era. India is about to take a leap to the new emission standards by April 2020.
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The possible hike in petrol and diesel prices seems completely justified this time. This is because all of us know that the oil refineries have to upgrade their equipment to produce the BS6 fuel. The estimated cost that the public sector oil companies will have to put to get the upgrade is around 80,000 Crores.
Similarly, the private sector oil companies will also have to incur such costs. The oil companies have brought this to the notice of the petroleum ministry. They say that they need to hike the price by marginal bits in order to recover their costs incurred. If they are not allowed to hike petrol and diesel prices, they might see red in their ledgers.
The government might allow oil companies to sell fuel at a higher rate. Though the global market may sell the fuel at the same price, Indians will be experiencing the price hike. It’s quite logical that the industry upgrades will lead to the price hike.
Talking about the price, we can expect the petrol prices to go up by Rs. 0.80 and diesel by Rs.1.50 per litre. There has been no confirmation on the petrol and diesel price hike but the points raised by the oil companies are quite logical. We should expect the fuel to be expensive because upgradations need investments and the costs also need to be recovered from the consumers itself.