Delhi to Get Cleaner BS-VI Fuel Next Yr – How Will It Impact You?
Would the BS-VI cleaner fuel actually reduce pollution? Would it pinch your pocket? Here’s all you need to know.
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With pollution levels in Delhi-NCR skyrocketing in the past week, the petroleum ministry on Wednesday announced that it will prepone the introduction of Bharat Stage VI (BS VI) grade auto fuels – labelled as the “world’s cleanest fuel” – in the national capital to 1 April 2018 instead of 1 April 2020.
The government is also considering the introduction of the BS-VI fuel across the National Capital Region (NCR) by 1 April 2019.
This follows an announcement by the government in January 2016 that the country would shift directly from the currently followed BS-IV emission norms to the BS-VI standard by April 2020, thereby skipping BS-V.
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Now, one might wonder whether the introduction of the cleaner BS-VI fuel helps Delhi in shedding its “gas chamber” tag? What would its impact be on the consumers? And would the oil manufacturers be ready to supply this fuel by 2018? We attempt to answer all these questions.
Would the New Fuel Really Be the Magic Wand for Delhi?
While Wednesday’s announcement indicated at the introduction of the cleaner fuel by next year, it did not direct the automakers to start the sale of BS-VI vehicles by that time. Moreover, it is important to note that BS-VI fuel can be used in BS-IV vehicles.
It is said that the introduction of cleaner fuel next year would only “marginally” improve the emission levels, thereby having a limited effect on air pollution.
The full benefit will be realised only when there is a holistic shift to the BS-VI emission standards across the country by 2020, which would entail not only the adoption of cleaner fuel, but also significant advancement in terms of vehicle technology.
In case of trucks, the emission reduction can be up to 87 percent for nitrogen oxide and 67 percent for particulate matter. For petrol cars, a 25 percent reduction in nitrogen oxide is estimated after the BS-VI standard comes into effect.
On Wednesday’s move, Anumita Roychowdhury, Executive Director of the Centre for Science and Environment, was quoted by Hindustan Times as saying:
What Would Be the Impact on Consumers?
Considering that more effort will go into the production of the cleaner BS-VI fuel by oil refiners, one can expect an increase in the cost of petrol and diesel by next year.
However, the impact on the price of vehicles would be fully felt only in 2020.
It is estimated that auto companies, component manufacturers and oil refiners would have to shell out Rs 70,000 crore-Rs 90,000 crore to shift to the BS-VI standards across the country by 2020.
Experts have pointed out that the new standard would push up the costs of small cars the most, and in that, diesel cars will witness the biggest price rise.
This is because BS-VI vehicles require a diesel particulate filter (DPF) which is very expensive. It can cost up to Rs 1 lakh even for a small car.
The price rise is expected to reduce the demand especially for diesel vehicles. Talking about how the market will change after the implementation of BS-VI standards across the country, Timothy Leverton, Chief Technology Officer at Tata Motors told Livemint:
Would the Manufacturers and Refineries Be Ready in Time?
When the shift to BS-VI emission standards across the country by 2020 was announced in January last year, concerns were raised whether auto manufacturers and oil refineries would be prepared in time to ensure a smooth transition to the new standard. And now, with the date being preponed for Delhi for the introduction of the new fuel, questions are being asked whether oil companies would be able to cope up with such a tight deadline.
However, oil companies have expressed confidence that they would be able to meet the demand in Delhi next year, as well as across the country by 2020.
Meanwhile, various auto manufacturers, especially those based in India, are apprehensive about being ready for the transition to the new standards by 2020.
After Wednesday’s announcement, Pawan Goenka, Managing Director at Mahindra and Mahindra Ltd told Livemint:
Wait, What Exactly is This Bharat Stage Standard?
The Bharat Stage emission standards, adopted in India in the year 2000 along the lines of similar norms followed in Europe, set limits on the amount of pollutants that can be released by vehicles. The emission levels can be reduced by switching to cleaner fuels and improving the technology in the vehicles.
Moreover, in each subsequent stage of these standards, the restrictions are intensified. For instance, while the fuel under BS-IV standards would have 50 parts per million (ppm) sulphur, this would be reduced to 10 ppm when the BS-VI norms kick in.
Currently, the BS-IV standard is in effect across the country. While BS-V was set to be enforced in 2019, the government, last year, decided to skip the standard and move directly to BS-VI. And instead of 2024, the date for BS-VI’s implementation was advanced to April 2020.
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