E10 Petrol For Older Vehicles May Be Offered Alongside E20, BPCL Says Infrastructure Can Support Lower Blend

Indian state-run oil marketing companies (OMCs) and the government are contemplating offering E10 petrol for older vehicles alongside the existing E20 blend, though no final decision has been made yet. BPCL Chairman and Managing Director Sanjay Khanna revealed that the lower ethanol content option could be provided for vehicles better suited to E10.

However, Khanna emphasized that the plan does not entail replacing E20 petrol. BPCL does not anticipate significant infrastructure issues if required to switch from E20 to E10. The more substantial challenge would be managing the logistics of supplying both fuel grades nationwide. India's fuel distribution network would need to handle separate E10 and E20 supply streams, potentially leading to increased inventory, transportation and handling requirements.

The government has previously highlighted that maintaining parallel supplies of E0, E10 and E20 at over 1 lakh fuel stations could complicate and elevate the distribution system's costs. The talks have gained traction after Chief Economic Adviser V Anantha Nageswaran backed the reintroduction of a lower-ethanol petrol option, particularly for older vehicles.

India achieved its 20% ethanol-blending target last year, surpassing the initially set timeline. BPCL also reported that its crude oil and LPG supplies remain secure despite ongoing geopolitical uncertainties. The company has finalized crude procurement for September and secured approximately half of its October requirement. Around 60% of BPCL's current crude need is sourced from spot markets, helping to offset limited term supplies.

Moreover, BPCL has made its first FY27 Iraqi crude purchase, involving around one million barrels, which has passed through the Strait of Hormuz and is being transferred via ship-to-ship from Fujairah.