petrol-diesel
Sales of 100-octane premium petrol have more than doubled in recent months. This is the only grade in which ethanol is not added. This increase comes amid growing concerns about possible damage to vehicles from ethanol-mixed fuel. He said that this increase was especially sharp in July. At that time the debate regarding mixing of ethanol had intensified. State-owned oil marketing companies sell 100-octane petrol under different brands, including XP100 of Indian Oil Corporation (IOCL), Speed100 of Bharat Petroleum Corporation and Power100 of Hindustan Petroleum Corporation. This grade of fuel is primarily designed for high-performance vehicles like supercars, luxury sedans and superbikes.
However, its demand is still limited and it accounts for only 0.1 percent of India’s total petrol sales. Its price is much higher than normal petrol. A person in the Business Standard report said that we have seen a significant increase in demand for ethanol-free petrol in recent months. Claims on social media about damage to vehicles caused by mixing ethanol have fueled this increase. The highest demand has come from Delhi. No official statement has come from the Ministry of Petroleum and Natural Gas (MoPNG), IOCL, BPCL and HPCL on this.
57 percent costlier than normal petrol
In Delhi, the retail price of ethanol-free 100-octane petrol is around Rs 160 per litre, which is about 57 per cent more than regular petrol. 20 per cent ethanol-mixed normal petrol is priced at Rs 102.12 per litre, while E20 premium grades — XP95, Speed97 and poWer95 — are priced at around Rs 111-112 per litre. In Mumbai, the retail price of 100-octane petrol is around Rs 167.35 per litre, while the price of normal petrol is Rs 111.21 per litre. The price of E20 premium grade is around Rs 120-121 per liter. Business Standard, quoting sources in its report, said that due to low demand, 100-octane petrol is available in less than 1 percent of fuel stations in the country and it is mostly limited to metro cities.
Demand may reduce soon
Officials expect the recent surge in demand to be short-lived and sales will slow down once concerns about ethanol-blended fuel subside. A senior official said that this fuel is for super-premium vehicles. If we look at the current trend, it seems that owners of ordinary vehicles are also buying it. This will not be possible for long because their fuel expenses will increase significantly. Last week, the government had said that the supply of premium grade petrol sold by government fuel retailers will continue without ethanol blending. The government also clarified that no decision has been taken to increase ethanol blending by more than 20 percent nor is there any proposal to reintroduce E0 or E10 petrol.
Benefits of 100-octane petrol
The research octane number (RON) of 100-octane petrol is 100, due to which it prevents engine knocking better than normal petrol. Due to its high octane rating, this fuel can withstand higher temperatures and compression before burning, so it is suitable for high-performance and high-compression engines. A customer who recently bought this fuel said that 100-octane fuel is very expensive, about 45 percent more than E20 petrol. Therefore, any benefit gained from mileage does not make economic sense. The only advantage is that by using 100-octane ethanol-blended fuel the potential engine damage can be avoided.
Controversy regarding E20 petrol
There is controversy regarding E20 petrol because parts of some vehicles, especially older models which were not made for this type of fuel, can wear out quickly, mileage can be reduced and maintenance costs can increase. Earlier this month, the government had admitted that the mileage of vehicles gets reduced by 3-5 percent with E20 petrol as compared to normal petrol. However, the government also said that this blend gives higher octane rating, better anti-knocking performance, burns faster, pickup is better, the vehicle accelerates easily and the engine runs cleaner. The government also rejected the possibility of selling pure petrol or E10 along with E20 and said that public sector banks have provided finance of about Rs 1 lakh crore annually for ethanol production and its related infrastructure.
