&imwidth=800&imheight=600&format=webp&quality=medium "Premium petrol in India to stay ethanol-free: Who stands to gain? WION Decodes")
The government on Monday (July 20 ) said in parliament that it does not intend to increase ethanol content in petrol beyond 20 per cent and any move in this regard will be preceded by detailed scientific studies and consultations with stakeholders. Minister of state for petroleum and natural gas Suresh Gopi made the statement in response to a question about further ethanol blending.
There are criticism that the blend reduces efficiency and vehicle performance.
While making the statement, Gopi also said that premium petrol variants such as Indian Oil’s XP100, Hindustan Petroleum’s poWer100 and Bharat Petroleum’s Speed100 would continue to remain ethanol-free.
But why is premium petrol in India being kept ethanol-free, and who is expected to benefit?
According to the government, premium fuels will not face ethanol blending because these are specialised products formulated with performance-enhancing additives for niche, high-performance applications and there is a very small market for it in India.
Notably, premium fuels account for just 0.5% of total petrol sales in the country.
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The government aims at reducing crude oil imports and improve energy security, lower greenhouse gas emissions, support domestic ethanol production and farmer incomes for which it is progressively increasing ethanol blending.
Premium fuels are specialized performance products for high-performance vehicles rather than mass-market use.
So, keeping premium fuels ethanol-free preserves a specialised fuel option, has negligible impact on India's overall ethanol blending targets and avoids creating a second nationwide supply chain for regular E0 petrol.
Who is expected to benefit?
Premium fuels that are without any ethanol blending are largely intended towards people who own sports cars, luxury performance sedans, superbikes.
Owners of vintage cars, classic motorcycles, collector vehicles also prefer the fuel as it has higher energy content per litre than ethanol blends, absorbs less moisture during storage. Most importantly they offer better long-term storage stability and avoid compatibility concerns in some older fuel systems that operate these vehicles.
The better storage stability of the fuel also makes it preferable for seasonal-use vehicles, standby generators and equipment that remain unused for extended periods.
While some, also the regular vehicle owners prefer the fuel for its smoother engine operation, cleaner combustion, high-octane performance and reduced concerns about fuel degradation during storage.
