- Govt mulls ethanol-free petrol option due to E-20 concerns.
- Pricing and infrastructure are major hurdles for implementation.
- Consumers report reduced mileage and engine problems with E-20.
Jagran Correspondent, New Delhi | The government is mulling over providing an alternative to regular petrol with ethanol at petrol pumps, amid growing controversy across the country over ethanol-blended petrol (E-20). In the last few days, consumers raised several concerns, including reduced mileage and potential engine problems. Discussions are going on within various government ministries over providing an option to buy ethanol-free oil. Oil marketing companies have also been consulted, said the sources.
Two Types Of Petrol Are Available
Currently, most petrol pumps are offering two types of fuel: regular petrol with E-20 and premium OMC brands (such as Speed, Turbojet, etc.). Oil companies have long been selling regular petrol with E-20 at a lower retail price.
What Is The Hurdle In Providing Alternative?
According to Petroleum Ministry officials and representatives of state-owned oil marketing companies (OMCs), the biggest hurdle in implementing this proposal is pricing, which needs to be addressed. Additionally, arrangements will need to be made to install additional dispensers for unblemished petrol at petrol pumps.
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If a new option for regular petrol without ethanol is introduced, separate dispensers and storage tanks will be required, creating additional costs and logistical challenges. However, the real challenge is pricing.
A senior official, speaking on condition of anonymity, said, "The pricing issue is the biggest issue. If we introduce an ethanol-free option, what should be its price? The decision will need to be made whether to set a no-under-recovery price (i.e., charging customers the full cost) for zero-ethanol petrol and whether to price E-20 petrol slightly lower than the current retail price. In this case, should customers choose which fuel to choose?"
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OMC representatives said adding another variant (without ethanol) after implementing E-20 will impact the entire supply chain. The cost of installing separate dispensers, maintaining them, and managing stock will increase. Discussions are ongoing between various government ministries regarding the implementation of the above measure.
Is E-25 Coming?
Meanwhile, the sale of E-25 fuel at petrol pumps is unlikely to begin in the market in the near future. Just last month, the Central government decided to exempt excise duty on E-22 to E-30 fuels and the Bureau of Indian Standards (BIS) set standards for these fuels. This raised the possibility that the government would soon begin selling petrol with a higher ethanol blend after E-20; however, the timing is uncertain.
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What Are The Current Regulations?
According to the current regulations, E-20 petrol (20 per cent ethanol + 80 per cent petrol) is currently being sold across the country. According to government data, an average of 1.5 per cent ethanol was added to petrol sold in the country around 2013-14, which has now increased to 20 per cent by 2025. Although the government had set this target (E-20) to be achieved by 2030, it has already been achieved.
The government claims that the move has saved Rs 1.44 lakh crore in foreign exchange, increased farmer income and reduced emissions. However, consumers and vehicle owners continue to raise issues such as reduced mileage and engine concerns in older vehicles.