India
oi-Madhuri Adnal
Bharat Petroleum Corporation Limited (BPCL) on Thursday said there is no proposal to replace E20 petrol with E10, amid reports that the government is looking at a lower-ethanol fuel option for owners of older vehicles.
BPCL said remarks made by its Chairman and Managing Director Sanjay Khanna after the company’s annual general meeting were being misquoted to suggest that E10 could replace E20.
Bharat Petroleum Corporation Limited (BPCL) clarified that E10 petrol will not replace the current E20 standard, though a premium 95-octane E10 option may be made available for older vehicles.
“Shri Sanjay Khanna Chairman & Managing Director, BPCL said that there is no proposal to replace the existing E20 blended Petrol with E10,” the company said in a post on X.
BPCL said Khanna’s comments were being misrepresented as the company considering E10 as an alternative to E20.
The oil company also said there had been no evidence of engine damage from E20 despite millions of vehicles using the fuel for more than three years.
“E20 contributes to reducing pollution, creating rural prosperity and saving foreign exchange,” BPCL said. It added that it would continue to support the national ethanol blending programme and focus on maintaining fuel quality.
The clarification comes against the backdrop of reports that the petroleum ministry has been discussing a possible E10 option with state-run oil marketing companies, including Indian Oil Corporation, BPCL and Hindustan Petroleum Corporation.
The proposal, as reported, is not about replacing E20. Instead, it could involve making premium 95-octane petrol with a 10% ethanol blend available to motorists, particularly those with older vehicles.
Using premium petrol outlets and existing infrastructure could also mean that oil companies would not have to set up a separate nationwide network for E10 fuel.
Why E10 is being discussed again
Petrol with a 20% ethanol blend, or E20, is now the standard fuel being sold at petrol stations across India.
While the government has maintained that E20 does not damage engines or vehicles, some motorists with older cars have raised concerns about mileage and compatibility.
Petroleum Minister Hardeep Singh Puri has previously said that E20 could affect fuel economy. According to the petroleum ministry, vehicles designed for E10 may see a marginal 3-5% reduction in fuel efficiency when running on E20.
The reason is fairly simple: ethanol contains less energy than petrol. So, as the ethanol content rises, fuel efficiency can also be affected.
The issue received fresh attention after Chief Economic Adviser V Anantha Nageswaran said a lower-ethanol petrol option should be available alongside E20, particularly for owners of older vehicles.
Premium petrol could provide an E10 option
According to a report by Mint, one proposal being considered is to sell premium 95-octane petrol with a 10% ethanol blend.
The fuels that could potentially be used for this include Indian Oil’s XP95, BPCL’s SPEED and Hindustan Petroleum’s Power95.
The advantage of using premium petrol is that the existing infrastructure could be used. There would be no need to build a completely separate network for E10 fuel.
“Options are being looked at in order to offer the more appropriate E10 fuel for older vehicles and allay the consumer concerns,” a person cited by Mint said.
The report said premium petrol currently accounts for about 15% of petrol sales by oil marketing companies, compared with around 4% in March.
Monty Sehgal, national spokesperson for the Federation of All India Petroleum Traders, told Mint that selling 95-octane fuel with a 10% ethanol blend would be relatively easy for oil companies because existing tanks and delivery systems could be used.
India began its ethanol-blending programme as a pilot in 2001. It has since been expanded as part of efforts to reduce fuel imports, cut emissions and increase the use of domestically produced ethanol.
