Shock to customers in the name of Euro -4 | What is Euro-4?
Increase in the price of petrol by Rs. 0.41 and of diesel by Rs. 0.26
Government is again increasing the prices of petrol and diesel even when the customers are not acquainted with the recently hiked prices of petrol in the occasion of budget amendments. Petrol prices are going to be increased in the 13 cities of India including Delhi, Mumbai, Hyderabad and others. Oil marketing companies has spent Rs. 40 thousand Crores on the production of petrol and diesel in accordance with the standards of Euro-4 and also on the improvisation of their plants. This expenditure is going to be shared to customers also. OMC companies are loosing Rs. 6 on petrol and Rs. 4.06 on diesel for selling them at lesser price than the international market. If this Euro-4 expenses are also not shared by the customers, companies have to incur huge loses. Hence, it became inevitable to hike the prices; explanation of the concerned people goes like this.
Except for the selected 13 cities, other places are supplied with Euro-3 standard petrol and diesel. Along with the cities that have upgraded to Euro-4, the cities that have upgraded to Euro-3 also are going to be supplied with increased prices of petrol and diesel, but their hike is less in comparison with Euro-4 standard cities. Though it is proposed to increase the prices in the cities that have upgraded to Euro-3, it is still not yet decided.
Because of the reason that the OMCs are selling the automobile fuels and cooking gas at a lesser price than the production cost, they have witnessed loss of Rs. 47,960 Crores which will be Rs. 70 thousand Crores by the end of next year. Without these price hikes, this loss may be increased further. Increase of petrol and diesel prices will lead to inflation and also cause the prices of other commodities to hike up since the government takes loans to fill up these subsidies.
OMC are sharing the burden of the retailers and this cannot be continued for longer periods. Also, there will be limit for the government subsidies on kerosene, LPG and other cooking fuels.