Oil PSUs ask petrol pumps to step up checks to ensure high-quality petrol

New Delhi, Nov 7 (IANS) Government-owned downstream oil majors—Indian Oil, Bharat Petroleum and Hindustan Petroleum-- have directed petrol pumps nationwide to check their underground storage tanks and fuel dispensing nozzles for water contamination every two to eight hours, depending on the weather conditions, to ensure that the quality of ethanol-blended petrol (E20) is maintained.

The three public sector oil companies presently operate close to a lakh petrol pumps across the country.

Most retail outlets of Indian Oil Corporation and Hindustan Petroleum are expected to carry out mandatory checks every two to four hours, while Bharat Petroleum Corporation Ltd (BPCL) has introduced testing after every eight hours.

 The increased monitoring is being undertaken as ethanol comes in the category of hygroscopic liquids that easily absorb moisture from the surroundings. When E20 petrol comes into contact with water, the ethanol separates from petrol and forms a distinct water-ethanol layer at the bottom of the storage tank. This process is known as phase separation, a senior Indian Oil official said.

Ethanol-blended petrol absorbs the most water and moisture during hot, humid, and monsoon weather conditions. During the monsoon season or in coastal regions, high ambient moisture drastically increases how fast the blend takes in water.

Dealers have been asked to use alcohol-resistant water-finding paste to detect water ingress in storage tanks.

 The Marketing Discipline Guidelines for the oil sector hold both fuel retailers and dealers responsible for ensuring that contaminated fuel is not sold to consumers. While oil companies are responsible for ensuring ethanol is blended in petrol according to government-prescribed limits, dealers must ensure that the right quality of fuel reaches consumers.

As of April 1, 2026, IOC operated 42,818 petrol pumps, BPCL 25,323 and HPCL 25,098. Private companies operated another 9,784 outlets, according to government data.

Meanwhile, India’s ethanol blending program continues its strong momentum with cumulative ethanol receipts reaching 987 crore litres by the end of September 2026, driven heavily by grain-based feedstocks, according to the latest data released by the All India Distillers’ Association (AIDA).

Grain-based feedstocks accounted for 705 crore litres, representing 71.4 per cent of cumulative ethanol receipts under Ethanol Supply Year (ESY) 2025-26. Total receipts by oil marketing companies stand at 987 crore litres against a total contracted allocation of 1,197 crore litres, achieving an overall supply fulfilment rate of 82.5 per cent.

The September figures demonstrate the rapidly strengthening role of grain-based feedstocks in providing steady, scalable fuel supplies. Maize continues to be the single largest feedstock contributor, accounting for 413 crore litres (over 41 per cent of total receipts), followed by surplus FCI rice at 222 crore litres and damaged foodgrains at 70 crore litres, according to an AIDA statement.

--IANS

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