Auto Fuel Vision and Policy 2025

Subject: Policy/Schemes

Context:

Latest round of fuel price increase has helped the state owned oil marketing companies (OMCs) to recover a part of ₹35,000 crore investments made in upgrading their refineries to BSVI fuels.

Concept:

• Emissions from vehicles are one of the top contributors to air pollution, which led the government at the time to introduce the BS 2000 (Bharat Stage 1) vehicle emission norms from April 2000, followed by BS II in 2005.
• BS III was implemented nationwide in 2010. However, in 2016, the government decided to meet the global best practices and leapfrog to BS-VI norms by skipping BS-V altogether.

• The Auto Fuel Vision and Policy 2025 is recommended by Saumitra Chaudhuri Committee
• It had recommended a 75 paisecess to recoup additional investments projected for producing cleaner fuels.
• It touched upon  Bharat norms (next stage implementation), Taxation issues & Alternative fuels
• BS-VI fuel is said to significantly reduce greenhouse gas emissions, especially carbon dioxide, unburnt hydrocarbons or methane and oxides of nitrogen. It has sulphur content of 10 parts per million (ppm) against 50 ppm in BS IV.