National Petroleum Authority Diesel price to increase marginally due to new sulphur levels

The NPA has revealed that the refining of sulphur levels for diesel will result in marginal price hike

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The National Petroleum Authority (NPA) has confirmed that the planned introduction of new sulphur levels for diesel would result in some marginal price hike.

The Authority from July 1 would start implementing new standards of 50 Parts Per Million (PPM), instead of the current 5000 to 3000 PPM levels in petroleum products in the country.

The 50 PPM are said to have lower sulphur levels that are less harmful to the health of human beings, the engines of vehicles, and even the environment.

READ ALSO: BOST defends sale of ‘contaminated’ fuel to oil company

In a response to questions sent to the Authority, the regulator noted that implementation of the new sulphur levels would result in some marginal price hike, “it’s less than one percent, and mind you, prices have fallen by three percent.”

The NPA in the statement also said it is going to ensure that new standards for importers have complied with the directive.

However, the NPA noted that “we have some old stocks of the 3000 ppm already in the system and there is a phase out period of three months within which the NPA, would keenly monitory existing stocks at the depots to ensure we gradually meet the 50 ppm”.

After the phase-out period, "we will monitor the sulphur levels at the pumps and non-complaint PSP will heavily be sanction including the withdrawal of their license” the NPA said.

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