100-octane premium petrol sales double amid E20 vehicle damage concerns

Demand for 100-octane petrol has surged, particularly in Delhi, as social media claims over E20-related vehicle damage prompt more motorists to switch fuels

Sales of 100-octane premium petrol, the only grade exempt from ethanol blending, have more than doubled in recent months amid mounting concerns over potential vehicle damage from ethanol-blended fuel, according to people familiar with the matter. The increase was especially sharp in July as the debate over ethanol blending intensified, they said. 

State-run oil marketing companies (OMCs) market 100-octane petrol under different brands, including Indian Oil Corporation’s (IOCL’s) XP100, Bharat Petroleum Corporation’s (BPCL’s) Speed100 and Hindustan Petroleum Corporation’s (HPCL’s) poWer100.

  This grade of fuel is designed primarily for high-performance vehicles, including supercars, luxury sedans and superbikes. Demand, however, remains niche, accounting for just 0.1 per cent of India’s total petrol sales because of its significantly higher price than regular petrol, people cited above said. 

“We have seen a noticeable surge in demand for ethanol-free petrol in recent months. Social media claims around vehicle damage due to ethanol blending have driven this increase. The highest demand has come from Delhi,” one of the people said. 

Queries sent to the Ministry of Petroleum and Natural Gas (MoPNG), IOC, BPCL and HPCL remained unanswered at the time of publication. 

In Delhi, ethanol-free 100-octane petrol retails at around ₹160 a litre, roughly 57 per cent more than regular petrol. Regular petrol, blended with 20 per cent ethanol, costs ₹102.12 a litre, while E20 premium grades — XP95, Speed97 and poWer95 — are priced at about ₹111-112 a litre. 

In Mumbai, 100-octane petrol retails at around ₹167.35 per litre, while regular petrol costs ₹111.21 per litre. E20 premium grades are priced at around ₹120-121 per litre. 

Because of its limited demand, fewer than 1 per cent of the country’s fuel stations stock 100-octane petrol, with availability largely confined to metro cities, the sources said. 

Officials expect the recent jump in demand to prove temporary, with sales likely to ease once concerns over ethanol-blended fuel subside. “This fuel is meant for super-premium vehicles. Looking at the current trend, it appears some owners of regular vehicles are also buying it. That is unlikely to be sustainable because their fuel bills will shoot up substantially,” a senior official said. 

Last week, the government said premium grades of petrol sold by state-run fuel retailers would continue to be supplied without ethanol blending. It also clarified that no decision has been taken to raise ethanol blending beyond 20 per cent, and that there is no proposal to reintroduce E0 or E10 petrol. 

100-octane petrol has a Research Octane Number (RON) of 100, giving it greater resistance to engine knocking than regular petrol. The higher octane rating allows the fuel to withstand higher temperatures and compression before ignition, making it suitable for high-performance, high-compression engines. 

“The 100-octane fuel is very expensive, almost 45 per cent more than E20 petrol. So the economics of any mileage benefit do not work out. The only advantage is that any perceived engine harm from ethanol-blended fuel can be avoided by using 100-octane,” said a customer who recently bought the fuel. 

The controversy over E20 petrol stems from concerns that some vehicles, particularly older models not designed for this kind of fuel, could face faster component wear, lower fuel efficiency and higher maintenance costs. 

Earlier this month, the government acknowledged that E20 petrol reduces vehicle mileage by 3-5 per cent compared with conventional petrol. It said, however, that the blend offers a higher octane rating, better anti-knock performance, faster combustion, improved pickup, smoother acceleration and cleaner engine operation. 

It also ruled out selling pure petrol or E10 alongside E20, saying public sector banks have financed nearly ₹1 trillion annually in ethanol production and related infrastructure.

 

Premium shift

• July demand surged, with Delhi leading the spike
• Demand remains niche at just 0.1% of petrol sales
• Costs 57% more than regular petrol; available at fewer than 1% of fuel stations
• Officials expect the recent surge to fade as costs deter regular motorists
• Government will retain ethanol-free 100-octane fuel; no E0 or E10 revival planned
• Centre has acknowledged that E20 lowers mileage by 3-5%, while highlighting its performance benefits