Prices of petrol and diesel have been made market-determined by the Government with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel in line with their international product prices, exchange rate, tax structure, inland freight and other cost elements.
Further, IOCL has informed that BS VI fuels are superior quality fuels in terms of low Sulphur content (10 PPM Max) besides other improved quality parameters. The production of BS VI fuels entailed huge investment for Indian Refiners. The pricing has been modified accordingly w.e.f. 01.04.2020 to partly compensate towards the investment cost incurred.
This information was given by the Union Minister of Petroleum & Natural Gas Shri Dharmendra Pradhan in the Rajya Sabha today in a written reply.