IOC to import petrol to meet Apr 1 deadline

State-owned Indian Oil Corporation plans to import about 0.7 million tonnes of ultra low sulfur petrol and diesel in February and March to meet the April 1 deadline for supply of green fuels in the country.

IOC, the country's largest refiner is importing petrol and diesel as refineries struggle to keep pace with the April 1 deadline of supplying Euro-III specification fuels in 11 cities and Euro-II grade fuel in the rest of the country.

"We plan to import 480,000 tonnes of diesel and 200,000 tonnes of petrol in February and March. Another 150,000 tonnes of diesel would be imported in April," an IOC official said. 

Imports would help the refiners meet the April 1 deadline for introduction of Euro-III specification petrol and diesel in Delhi, Kolkatta, Mumbai, Chennai, Bangalore, Pune, Surat, Hyderabad, Ahmedabad, Kanpur and Agra.

There would also be no problem in supply of Euro-II (or Bharat Stage-II) grade petrol in the rest of the country but supply of same grade diesel was possible only in 65 per cent of the country and the rest would have the new grade fuel from August 1.

The National Auto Fuel policy, drafted for cutting pollution, envisages supply of diesel with 0.035 per cent sulfur and cetane number 51 and petrol with one per cent benzene and octane number 91 in 11 cities from April 2005.

"We had to import fuel as some of the refineries are not fully prepared to produce the clean fuel," the official said. 

In February, IOC will import 90,000 tonnes of 0.25 per cent sulfur diesel, 120,000 tonnes of 0.05 per cent sulfur diesel and 30,000 tonnes of 0.035 per cent sulfur diesel.

It plans to import 150,000 tonnes, 60,000 tonnes and 30,000 tonnes respectively of 0.25 per cent, 0.05 per cent and 0.035 per cent sulfur diesel in March.

Besides, IOC also has tendered for 75-90,000 tonnes of 0.05 per cent and 50-60,000 tonnes of 0.035 per cent sulfur diesel for delivery between March 4 and April 30.

Gasoline imports in February are expected to total 90,000 tonnes, comprising 10,000 tonnes of 92 RON, 45,000 tonnes of 91 RON and 35,000 tonnes of 88 RON material.

In March, a total of 110,000 tonnes comprising 75,000 tonnes of 91 RON and 35,000 tonnes of 88 RON gasoline is set to arrive. "By May, we expect the refiners to be ready to meet the requirement of Euro-III and Euro-II fuel," the official said.

India would need 0.25 million tonnes of Euro-III petrol every month and 0.54 million tonnes of Euro-II petrol a month from April. About 0.55 million tonnes per month of Euro-III grade diesel and 3.22 million tonnes per month of Euro-II grade diesel would be required.

Of this Indian refineries would be able to meet only 75 per cent, he said. "Imports are also not possible as ultra-low sulfur diesel of our specification is not available in international market. Therefore the slippage," he added.