India Joins Elite Group Of Nations With Domestic Production Of 'Reference' Petrol And Diesel

India on Thursday (26 October) joined a select group of nations that produce 'reference' petrol and diesel, a highly specialised fuel used for testing automobiles.

Oil Minister Hardeep Singh Puri announced the launch of the fuel, stating that it marks another step towards Atmanirbhar Bharat (self-reliant India), as it will end imports.

Reference Fuels have higher specifications and are critical for calibrating and testing by automobile manufacturers and testing agencies such as the International Centre for Automotive Technology (ICAT) and the Automotive Research Association of India.

India has been dependent on imports for many years to fulfill the demand for these specialised fuels.

However, now the Indian Oil Corporation (IOC) has successfully developed domestic products that will replace imported alternatives, ensuring a dependable supply for vehicle manufacturers and testing agencies at a significantly reduced cost.

Puri said there are only three suppliers of reference fuel in the world including US giant Chevron.

IOC's Paradip refinery in Odisha will be responsible for producing 'reference' grade petrol, while its Panipat unit in Haryana will focus on producing diesel of the same high quality.

Fuel retailers such as IOC offer two main types of petrol and diesel - regular and premium - at their fuel stations.

The key distinction between these fuels lies in their octane numbers. The octane number is a unit used to measure the ignition quality of petrol or diesel fuel.

Regular fuel has an octane number of 87, while premium fuel has an octane number of 91. However, reference grade fuel comes with an octane number of 97.

In order to conduct vehicle testing, a higher grade of fuel is required compared to regular or premium petrol and diesel. These fuels, known as 'reference' petrol/diesel, must meet a range of specifications outlined by government regulations.

These specifications include factors such as Cetane number, flash point, viscosity, sulphur and water content, hydrogen purity, and acid number.

Producing 'reference' fuel domestically will also provide a cost advantage, according to Puri.

The cost of regular petrol and diesel in the range of Rs 90-96 per litre is significantly lower compared to the imported 'reference' fuel, which costs Rs 800-850 per litre. By producing the fuel domestically, the cost can be reduced to around Rs 450 per litre.

Refineries traditionally did not produce fuels with low volume requirements, as they were not in high demand. As a result, all the necessary fuels for vehicle testing had to be imported.

In line with the government's objective of achieving self-reliance, IOC has commenced fuel production at its refineries, according to S M Vaidya, the company's chairman.

In addition to IOC, BPCL and HPCL are the other two major fuel retailers in the country. These three state-owned companies collectively control around 90 per cent of the market.

Puri emphasized that this step showcases "our indigenous technical prowess", providing momentum to the government's Make in India initiative.

After meeting the domestic requirements, IOC will tap into the export market for the fuel.

Vaidya explained that the domestically produced reference fuel will help vehicle manufacturers reduce imports, while also offering competitive pricing and shorter lead times.

The Paradip refinery will provide reference gasoline (petrol) fuels in various blends, including E0, E5, E10, E20, E85, and E100. Additionally, the Panipat refinery will offer reference diesel fuel in the B7 grade.

Reference fuels (gasoline and diesel) are premium high-value products that are used by auto OEMs and organizations in the automotive industry for vehicle calibration, testing, and certification purposes.

These premium fuels play a crucial role in ensuring accurate and reliable performance evaluations.