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As the 13 major Indian cities will upgrade to the BS-IV norms with effect from 1st April 2010, the fuel in the respective cities is expected to get expensive.
The hike is expected to be in the tune of 1.1% i. e. 50 Paisa making an attempt to help oil firms recover investment made for plant upgrade. In fact, apart from the 13 cities, the other cities will upgrade to BS-III by October. Notably, BS emission norms follow the European norms which are currently operating under the Euro V norms.
However, the price of diesel will see a hike of 26 Paisa in Mumbai but the hike will result in making the fuel expensive by more than Rs. 2 in Delhi. The Delhi government has raised VAT (value added tax) on the diesel which will also be co-incidentally applied from 1st April and hence will take the price of the fuel high in the Delhi market. With effect from tomorrow, petrol will cost Rs. 47.93 and diesel will be priced at Rs. 38.10 a litre in Delhi.
The government believes that the investment will help the oil companies in recovering the Rs. 320 billion invested with an attempt to produce cleaner and greener fuel.