Is Your Petrol Changing? BPCL Finally Breaks Silence on E10 Switch Rumors

Bharat Petroleum Corporation Limited (BPCL) has formally denied proposals to replace the existing E20 blended petrol with an E10 alternative. This comes following earlier comments by BPCL Chairman Sanjay Khanna regarding the feasibility of a lower-ethanol fuel option. The government has opposed separate nationwide supplies of petrol, E10 and E20.

Khanna initially said at a post-AGM press conference that E10 feasibility was being explored. Khanna said, "We are looking into various related aspects but nothing has been finalised yet." The state-run refiner quickly walked back the comments on X.

"Shri Sanjay Khanna Chairman & Managing Director, BPCL said that there is no proposal to replace the existing E20 blended Petrol with E10...His response is being misquoted..." BPCL stated on the platform.

The company stated, "Large-scale field experience from millions of vehicles operating on E20 fuel for more than last 3 years, has not shown any evidence of engine damage..." A senior Petroleum Ministry official reinforced this stance, saying, "There have absolutely been no discussions in govt on the matter." The official added, "Govt has said before that there are no plans to introduce E10 fuel. There is no departure from that position."

Premium Fuel Proposal

Mint reported, a proposal to bypass establishing a separate distribution network by offering premium 95-octane fuels with a 10 per cent ethanol blend. This would involve Indian Oil's XP95, BPCL's SPEED and Hindustan Petroleum's Power95.

A senior oil company executive confirmed that the government sought feasibility details regarding storage and dispensing infrastructure for an alternative blend in July. Premium petrol sales have surged, currently comprising 15 per cent of oil marketing company sales compared to 4 per cent in March.

"Providing '95 Octane' branded fuels with 10% ethanol is quite easy for OMCs. No need to change tanks or delivery units," Federation of All India Petroleum Traders spokesperson Monty Sehgal told Mint.

Vehicle Compatibility Concerns

India initiated its ethanol-blending programme as a pilot project in 2001. The government subsequently introduced E20 nationwide last year as the standard retail fuel.

Motorists have continuously raised concerns regarding engine compatibility and fuel economy when using the higher 20 per cent ethanol blend in older vehicles. Ethanol has a lower energy density than petrol—meaning higher ethanol blends can affect fuel efficiency. Chief Economic Adviser V Anantha Nageswaran previously advocated for a lower-ethanol alternative to address these consumer issues.

Union Petroleum Minister Hardeep Singh Puri said earlier this year that vehicles designed specifically for E10 could experience a 3-5 per cent drop in fuel efficiency when running on E20.