BPCL Considers E10 Petrol For Older Vehicles Alongside E20

The government and state-run oil marketing companies are considering making E10 petrol available for older vehicles alongside E20 fuel.

Bharat Petroleum Corporation Ltd (BPCL) Chairman and Managing Director Sanjay Khanna stated that the proposal is being discussed to provide a lower ethanol-blend option for vehicles that may be better suited to E10.

However, he clarified that the plan does not involve replacing E20 petrol. According to Khanna, BPCL does not expect major infrastructure difficulties if the company were simply required to switch from E20 to E10.

The bigger challenge would be supplying both fuel grades simultaneously across the country. India's fuel distribution network would need to manage separate E10 and E20 supply streams, potentially increasing inventory, transportation and handling requirements.

The government has previously pointed out that maintaining parallel supplies of E0, E10 and E20 across more than one lakh fuel stations could make the distribution system more complicated and expensive.

The discussions have gained momentum following support from Chief Economic Adviser V Anantha Nageswaran for restoring a lower-ethanol petrol option, particularly for older vehicles.

India reached its 20% ethanol-blending target last year, well ahead of the original schedule. In a separate development, BPCL said its crude oil and LPG supplies remain secure despite continuing geopolitical uncertainties.

The company has completed crude procurement for September and has already secured roughly half of its October requirement. Around 60% of BPCL's current crude requirement is being sourced from spot markets, with spot cargoes helping compensate for limited term supplies.

The company has also purchased its first Iraqi crude cargo of FY27, involving about one million barrels. The shipment has crossed the Strait of Hormuz and is being transported to Fujairah for ship-to-ship transfer.

BPCL said it would consider sourcing additional Iraqi crude where insurance costs, vessel availability and overall economics make such purchases viable.

This development is significant as it may impact the fuel options available for vehicle owners in the country. The government's consideration of E10 petrol for older vehicles alongside E20 fuel reflects its efforts to address concerns related to ethanol-blending and provide a suitable option for vehicles that may not be compatible with higher ethanol blends.