India to phase out RON 92

Sale of RON 92 gasoline in India will be discontinued in July when RON 95 is introduced to the domestic market, the government said. The price of the higher octane gasoline would be the same as RON 92, it added. However, those who prefer to use the higher octane, RON 97, variant may have to pay more as the government emphasized it needs to tax the fuel to subsidize the production of RON 95. Meanwhile, the government proposed to include petroleum products in its Market Linked Focus Product Scheme to encourage exports, as India has surplus refining capacity. The scheme provides ad valorem support up to 2.5% of the freight on board value that could be used to import inputs. The scheme is linked to a particular product tied to specific destinations. (February 21, 2009)