6 days ago
BPCL Says E10 Supply Is Feasible Alongside E20
E10 petrol contains up to 10% ethanol, while E20 contains up to 20%.
India is considering selling both types of petrol at the same time.
BPCL says its existing equipment could dispense either fuel.
However, transporting and storing two fuel types across many stations could be more complicated.
E10 might help people whose older vehicles are better suited to lower-ethanol petrol.
The plan would add E10 as a choice rather than replace E20.
No final decision has been made yet.
BPCL also said its oil supplies are currently safe despite international tensions.
The company has arranged crude for September and secured about half of what it needs for October.
The Centre and state-run oil companies are considering offering E10 petrol alongside E20.
BPCL CMD Sanjay Khanna said existing infrastructure can dispense E10 without major changes.
BPCL said the main challenge would be managing separate E10 and E20 supply streams nationwide.
The proposal is aimed partly at older vehicles and follows support from Chief Economic Adviser V. Anantha Nageswaran.
BPCL said its crude supplies are secure, with September covered and about half of October procured.
- Who
- The Centre, state-run oil marketing companies, BPCL CMD Sanjay Khanna, and Chief Economic Adviser V. Anantha Nageswaran.
- What
- Officials are considering offering E10 petrol alongside E20, while BPCL says its existing infrastructure can dispense the lower blend.
- Where
- The proposal concerns India's nationwide fuel distribution network; BPCL also referred to Iraqi and Gulf crude supplies.
- When
- The proposal was discussed on Thursday; BPCL said September supplies were arranged and about half of October's requirement was secured.
- Why
- E10 is being considered for older vehicles and to address concerns about higher ethanol blends, while ethanol blending is intended to reduce dependence on crude-oil imports.
Lower-Blend Choice
Logistical Caution
Offering E10 alongside E20
Lower-Blend Choice
E10 could provide a lower-ethanol option for older vehicles and help address public concerns while retaining E20.
Logistical Caution
The proposal has not been finalized, and officials must determine whether the country can supply another motor-spirit grade simultaneously.
Infrastructure and distribution
Lower-Blend Choice
BPCL says its existing network can dispense E10 and does not require major infrastructure changes.
Logistical Caution
Managing separate E10 and E20 supply streams across more than one lakh fuel stations could make inventory, transport, and handling more complicated and expensive.
Crude sourcing
Lower-Blend Choice
BPCL says supplies are currently safe and is diversifying sources, including Iraqi and Gulf crude.
Logistical Caution
The supply environment remains volatile because of the war in West Asia, disruption to Iraqi supplies, the closure of the Strait of Hormuz, and possible US tariffs on buyers of Russian energy.
Key facts
- E10
- Petrol containing up to 10% ethanol.
- E20
- Petrol containing up to 20% ethanol.
- Infrastructure
- BPCL says no separate infrastructure or major changes would be required to switch between E20 and E10.
- Main operational issue
- Supplying E10 and E20 simultaneously could increase inventory, transportation, and handling requirements.
- Decision status
- The Centre and oil marketing companies are still considering the proposal; no final decision has been taken.
- Crude procurement
- BPCL said September crude arrangements were complete and roughly half of its October requirement had been secured.
- Iraqi crude
- BPCL purchased its first Iraqi crude cargo of the fiscal year, involving about one million barrels, according to the reports.
Quotes
Vetsa Ramakrishna Gupta
Director of finance at Bharat Petroleum Corp. Ltd.
“One of the options being explored is whether we can have E10 fuel for the older vehicles, which is what is being pursued right now. What are the challenges related to the supply? Can we handle another MS grade simultaneously? Those challenges are there, and they are being debated. But definitely, this was one of the options which was being pursued. In what form it will come, to what extent it will come, those details are being worked out at this juncture at different levels.”
livemint.com
“No changes (are required). We are already dispensing E20; it's only a matter of switching from E20 to E10 if necessary. On that account, for the company, we don't see any challenge.”
livemint.com
Sources
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