Premium petrol sales triple as E20 concerns push buyers to high-octane fuel

Concerns over ethanol-blended E20 petrol damaging vehicle mileage and engines have driven consumers to premium, high-octane petrol, pushing its share of sales to 12-15% from about 4% in March, dealers and executives…

Concerns over ethanol-blended E20 petrol damaging vehicle mileage and engines have driven consumers to premium, high-octane petrol, pushing its share of sales to 12-15% from about 4% in March, dealers and executives say. The premium variants, such as Indian Oil's XP95, cost Rs 110-115 a litre versus Rs 102 for regular petrol, though both contain 20% ethanol. Dealers say demand will keep rising unless consumers get access to E10 or ethanol-free petrol.

Premium petrol sales triple as E20 concerns push buyers to high-octane fuel

The Union government's chief economic adviser has backed reintroducing E10 alongside E20 to calm public concern. Meanwhile, diesel car sales jumped to 71,385 units in July from 64,853 in June, as some consumers shift away from ethanol-blended fuel entirely. Queries to state-run oil marketing companies and the petroleum ministry went unanswered.

Indian Opinion Analysis

The surge to premium petrol, despite it also being E20, shows consumer distrust of the government's safety assurances is now a market reality. India's ethanol blending roadmap targets 20% blending by 2025, but the backlash has revived calls for a dual-pump system, E10 alongside E20, which the chief economic adviser has publicly backed. State-run oil marketers, who invest in blending infrastructure, face a dilemma: a parallel E10 supply chain could undercut the economics of ethanol procurement. The next signal will be whether the petroleum ministry issues any directive on offering E10 at select pumps, or leaves the market to sort out the price gap between Rs 102 and Rs 115 a litre.


Source: livemint.com

This story was synthesised by AI from the source linked above.

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