India on Thursday started producing ‘reference’ petrol and diesel, joining a select group of countries that produce the highly specialized fuel used for testing cars.
Launching the fuel, Oil Minister Hardeep Singh Puri said the start of production of ‘reference fuel’ is another step towards Aatmanirbhar Bharat (self-reliant India) as it will end imports.
These fuels, which have higher specifications, are critical for calibration and testing by automakers and testing agencies such as the International Center for Automotive Technology (ICAT) and the Automotive Research Association of India. For decades, India relied on imports to meet demand for these specialized fuels.
But now, Indian Oil Corporation (IOC) has domestically developed products that will replace imports, ensuring reliable supply at a much lower cost to vehicle manufacturers and testing agencies.
Puri said there are only three benchmark fuel suppliers in the world, including US giant Chevron.
IOC’s Paradip refinery in Odisha will produce ‘reference quality’ petrol and Panipat plant in Haryana will produce diesel of such quality.
Fuel retailers such as IOC mainly sell two types of petrol and diesel through their petrol station network: regular and premium. The biggest difference between normal and premium fuel is the octane number. Regular fuel has an octane number of 87, but premium fuel has an octane number of 91. Reference quality fuel comes with an octane number of 97.
The octane number is nothing more than a unit to measure the ignition quality of gasoline or diesel.
For vehicle testing purposes, the fuel must be of a higher quality than regular or premium gasoline and diesel. The many specifications – from cetane number to flash point, viscosity, sulfur and water content, hydrogen purity and acid number – are listed under government regulations; such fuels are called ‘reference’ petrol/diesel.
These reference fuels are used for emissions testing of vehicles equipped with positive-ignition engines.
Puri said producing ‘reference fuel’ domestically will also bring a cost benefit.
At the price of Rs 90-96 per liter for regular petrol and diesel, the imported ‘reference’ fuel costs Rs 800-850. Producing it domestically reduces the cost to around Rs 450 per litre.
Because volume requirements for such fuels were traditionally not very high, refineries did not produce them. All ‘reference’ requirements for vehicle testing were imported.
IOC, in line with the government’s target of becoming Aatmanirbhar, has started production of the fuel at its refineries, company chairman SM Vaidya said.
Besides IOC, the other two dominant fuel retailers in the country are Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL). The three state-owned companies control about 90 percent of the market.
Puri said the move marks “our indigenous technical prowess”, which gives impetus to the Indian government’s Make in India mission.
After domestic requirements are met, the IOC will also tap the export market for the fuel.
The minister spoke about the four-pronged energy security strategy adopted by the government to make the country ‘energy independent’ by 2047.
These include diversifying energy supplies, increasing exploration and production footprint, alternative energy sources and meeting the energy transition through a gas-based economy, and green hydrogen and electric vehicles.
Highlighting steps taken to reduce emissions, he said the rollout of petrol blended with 20 percent ethanol has been brought forward to 2025 from a previous deadline of 2030.
“I am told that the 12 percent ethanol blend target has been achieved this month and we are on track for the 20 percent target by the end of the 2025 calendar year,” he said, adding that 5,000 petrol pumps are already selling 20 per pump. cent ethanol-blended gasoline.
Vaidya said the indigenously developed benchmark fuel will lead to import substitution at a better price and minimum lead time for the vehicle manufacturers. Reference petrol (gasoline) fuels will be available in E0, E5, E10, E20, E85, E100 at the Paradip refinery. Reference diesel fuel will be available in grade B7 at the Panipat refinery.
Reference fuels (gasoline and diesel) are high-performance premium products used for vehicle calibration and testing by automotive OEMs and organizations involved in automotive testing and certification.
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