New Delhi: India is considering making E10 petrol available alongside E20, with Bharat Petroleum Corporation Ltd (BPCL) saying its existing fuel distribution infrastructure can support the lower ethanol blend without major changes, Mint reported.
BPCL Chairman and Managing Director Sanjay Khanna said oil marketing companies (OMCs) are ready to supply petrol containing up to 10% ethanol through the existing distribution network. However, he said no final decision has been taken on the proposal, Mint reported.
“Various aspects are being considered, but nothing has yet been finalized,” Khanna said.
The Centre and OMCs are examining the possibility of introducing E10 petrol through the existing Octane 95 network by reducing the ethanol content in the premium petrol variant. This could allow E10 to be supplied without requiring additional dispensing infrastructure.
Khanna said BPCL is already dispensing E20 petrol and would not face major challenges in switching to E10 if the government decides to introduce the lower-blend option.
E10 may be targeted at older vehicles
The proposal follows support from Chief Economic Adviser V. Anantha Nageswaran for providing consumers with a lower ethanol-blend option. In a recent column in The Indian Express, he suggested that making E10 available alongside E20 could address concerns among owners of older vehicles.
Khanna stressed that the discussions do not involve reducing India’s ethanol blending target to 10%. Instead, the focus is on providing E10 as an additional option alongside E20.
One option under consideration is to make E10 available specifically for older vehicles. OMCs are assessing the logistics of supplying another motor spirit grade and whether they can manage the additional requirements through their existing network.
The final structure and scale of the proposed arrangement have not yet been decided.
India has been steadily increasing ethanol blending in petrol as part of its efforts to reduce crude oil imports and the associated import bill. The ethanol blending programme began with a pilot project in 2001, while E5 petrol was introduced in 2006.
BPCL diversifies crude supply
Khanna also said India’s oil supplies remain safe despite volatility linked to the conflict in West Asia and uncertainty over possible US tariffs on countries importing Russian energy.
He said India continues to diversify its crude supply sources to manage geopolitical risks.
BPCL Director (Finance) Vetsa Ramakrishna Gupta said the company had already arranged crude supplies for September and was making procurement arrangements for October.
BPCL is also expected to receive its first Iraqi crude cargo of the current financial year in the coming days. The company is willing to buy additional crude from Gulf suppliers on a free-on-board basis, subject to vessel availability.
Gupta said BPCL had secured a vessel whose owner was willing to transport the cargo to Fujairah and conduct a ship-to-ship transfer.
Iraq has traditionally been one of India’s major crude suppliers, but shipments have been disrupted by the conflict and difficulties affecting movement through the Strait of Hormuz.
Gupta said BPCL could lift crude cargoes from within the Strait of Hormuz if insurance costs remain reasonable and ship owners are willing to accept the associated risks.
