No logistical challenges if lower ethanol blend is introduced: Bharat Petroleum chief

Bharat Petroleum's CEO, Sanjay Khanna, assured reporters that introducing a lower ethanol blend petrol variant would not pose any logistical challenges. Speaking at a media briefing after the company's annual general meeting, Khanna stated that switching from the current E20 blend to the proposed E10 blend would simply involve a change in the blend ratio.

He emphasized that this transition would not present any difficulties for Bharat Petroleum or other oil companies. The idea of re-introducing the lower ethanol blend has gained traction following remarks by the Chief Economic Advisor, V. Anantha Nageswaran, who suggested its potential revival for older vehicle fleets. However, Bharat Petroleum clarified that there was no intention to replace the existing 20% ethanol blend with the lower 10% variant.

The company had previously stated that reports of E10 being considered as an alternate option were inaccurate. BPCL's Director (Finance), Vetsa Ramkrishna Gupta, revealed that the company had secured crude requirements up to September and was working towards securing the same for October, which was about half completed. Khanna highlighted that a potential ban on Russian oil imports due to the situation in the Strait of Hormuz could create significant pressure for oil companies to meet the national demand.

Russian oil constitutes roughly 35-40% of Indian Oil Marketing Companies (OMCs)’ oil basket. Gupta informed that Bharat Petroleum had secured crude requirements for September and was "about 50-55% complete" for October. He added that the refiner would aim to fully secure its crude requirements for October by the following week. While Gupta mentioned that securing supplies was not a major issue, he noted that the effective landing price and premiums fluctuated monthly due to the evolving geopolitical situation.