The Remarks That Caused a Stir
The confusion began following a media interaction after BPCL's annual shareholder meeting. Reports emerged suggesting that Chairman and Managing Director Sanjay Khanna indicated the company was open to reintroducing E10 petrol (a blend of 10% ethanol
and 90% petrol) as an option for consumers. Some interpretations of his comments led to speculation that BPCL might be considering a rollback from the currently promoted E20 fuel, which contains 20% ethanol. The chairman was quoted as saying there would be no major operational challenge in switching from E20 to E10 if government policy changed. This sparked a wider discussion about the direction of India's ethanol blending programme, a cornerstone of its energy policy.
BPCL's Swift Clarification
In response, BPCL issued a formal statement to set the record straight. The company asserted that there is no proposal to replace the existing E20 blended petrol with E10. According to the clarification, the chairman’s response was “misquoted to suggest as if E10 is being considered as an option, which is not correct.” The company explained that the context of the discussion was a wider, ongoing debate about whether a lower-ethanol blend could be made available specifically for older vehicles. Khanna himself stated, “I never said that E20 will be changed to E10… That doesn't mean E20 will be out and E10 will be in.” BPCL reiterated its full support for the national ethanol blending programme and its commitment to fuel quality.
Why Ethanol Blending is a National Priority
The entire issue is sensitive because of India’s ambitious Ethanol Blended Petrol (EBP) programme. The government has pushed for higher ethanol blends to achieve several key objectives: reducing the country's massive oil import bill, lowering carbon emissions, and providing an additional income stream for farmers who supply the sugarcane and grains used to produce ethanol. The official roadmap has been to progressively increase the blend, moving from the E10 standard achieved in 2022 to making E20 fuel widely available by 2025. This aggressive timeline is five years ahead of the original 2030 target, highlighting the policy's importance. Any perceived wavering from a major oil marketing company like BPCL could create uncertainty about this national goal.
The E20 Challenge for Older Vehicles
The underlying reason for the debate is concern over the compatibility of E20 fuel with older vehicles, particularly those manufactured before the E20-compliant engines became standard around April 2023. While the government and manufacturers state that extensive testing has shown no evidence of engine damage from E20 fuel in the vast majority of vehicles, some owners of older cars and two-wheelers have reported issues. This has led to policy discussions about offering E10 as an alternative for these legacy vehicles. However, the logistical challenge of supplying three different grades of petrol (unleaded, E10, and E20) nationwide is a significant hurdle that oil companies and the government are still debating.
