The State Trading Corporation (STC) plans to import a new type of diesel by 2012 to reduce air pollution. The new type of fuel will be in line with international standards.
The aim is to reduce the sulphur content in fuel from 500 to 50 parts per million (ppm).
The STC has already started negotiations with Mangalore Refinery Petrochemicals Ltd, the country’s main fuel supplier, for the import and distribution of this type of fuel.
A delegation from the STC recently visited India to finalise discussions on import issues. According to the corporation, the product will be lighter due to its reduced sulphur content. This could have an impact on the price.
The committee set up at the Ministry of Industry and Commerce is currently studying how this type of fuel will be introduced on the local market. The committee is required to analyse whether there is an adjustment period for buses or for vehicles with old engines.
The STC is also working on a new project to introduce a type of fuel blended with ethanol.
The goal is to reduce the country’s sole dependence on gasoline. A steering committee was established at the Prime Minister’s Office to work on this project.
Meanwhile, the STC has already started procedures to import a type of diesel with a sulphur content reduced from 2,500 ppm to 500 ppm for the automotive industry.
The diesel with a 2,500-ppm sulphur level is imported solely for bunkering purposes. This new type of diesel will be more refined and will cause less pollution.