Consumers shift to premium petrol amid E20 concerns; demand doubles at Delhi fuel stations: Sources

A growing number of vehicle owners in Delhi are opting for premium petrol variants amid concerns over the wider rollout of E20 fuel, leading to a sharp increase in demand for high-octane fuels at retail outlets, sources told Business Today TV.

According to sources, fuel stations across the national capital are witnessing a noticeable shift from regular petrol to premium fuel variants such as IndianOil's XP95 and XP100, Bharat Petroleum's Speed 97 and similar high-performance fuels.

Demand for premium petrol has reportedly doubled at several retail outlets in Delhi, while fuel pumps located in affluent neighbourhoods have recorded as much as a five-fold jump in sales, sources said.

The trend is particularly evident at individual fuel stations. Sources said daily sales of XP95 at one Delhi petrol pump have risen from around 1,000 litres to between 1,500 and 1,700 litres. Meanwhile, demand for XP100 at the same outlet has surged fivefold, increasing from about 100 litres a day to nearly 500 litres.

The rise in demand comes as some consumers prefer higher-octane fuels amid discussions around E20 petrol, which contains up to 20 per cent ethanol. While automakers and oil marketing companies have maintained that E20-compatible vehicles are designed to run on the blended fuel, some motorists are increasingly choosing premium petrol variants, particularly for high-end and performance-oriented vehicles.

Neither the oil marketing companies nor the government have officially commented on the reported demand shift.

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E20 petrol 'currently costlier' than pure petrol

In a separate development, the Ministry of Petroleum and Natural Gas on Friday said E20 petrol is currently more expensive to produce than conventional petrol at prevailing global crude oil prices of around $70 per barrel. However, it stressed that India's ethanol blending programme has played a crucial role in shielding consumers from volatile international oil prices while strengthening the country's long-term energy security.

The clarification comes after the Centre recently dismissed social media claims alleging that E20 fuel damages vehicle engines, significantly reduces mileage, or that the government plans to raise ethanol blending beyond 20 per cent without adequate testing.

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In a detailed FAQ on the Ethanol Blended Petrol (EBP) Programme, the ministry explained that maize-based ethanol is procured at around Rs 71.86 per litre before GST, transportation, storage and handling costs. At current crude prices, this makes E20 more expensive to produce than pure petrol. However, if crude oil prices rise to around $120-130 per barrel, ethanol becomes the more economical option.

The ministry said the key benefit of ethanol blending lies in reducing India's dependence on imported crude oil. Since nearly 20 per cent of every litre of petrol sold today consists of domestically produced ethanol, the programme helps insulate fuel prices from global oil market volatility.

According to the ministry, the EBP programme has so far saved over Rs 1.97 lakh crore in foreign exchange, replaced nearly 316 lakh metric tonnes of crude oil imports, reduced carbon emissions by about 952 lakh metric tonnes, and transferred more than Rs 1.66 lakh crore to farmers.

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The government also reiterated that India's transition to E20 has been gradual, involving extensive consultations with automobile manufacturers, oil marketing companies, testing agencies and other stakeholders. Petroleum Minister Hardeep Singh Puri has also rejected concerns over engine damage, stating that extensive testing and industry feedback have found no significant performance or durability issues in E20-compatible vehicles. He further clarified that no decision has been taken on introducing ethanol blends beyond E20, with studies on higher blends still underway.