Floating of a public e-tender by the Oil Marketing Companies (OMCs) in the public sector for procurement of 329- crore litres of ethanol during December 2018 and November 2019 for use of ethanol-blended petrol (EBP) has triggered worry among petroleum dealers who claim that improper blending of ethanol by the companies is resulting in problems for vehicle users who in turn are accusing them of ‘adulteration.’
While the move is aimed at reducing crude oil imports, vehicular emissions and benefit farmers and rural economy as ethanol is produced from grains, agricultural waste and various biomass feedstock sources, petroleum dealers say that ethanol absorbs moisture from the atmosphere and when it comes in contact with the water in petrol tanks, it forms a distinct layer and settles at the bottom, resulting in the vehicles stalling or facing difficulty while starting.
“Customers accuse petrol pump owners for adulterating petrol with water while the two are unmixable,” rues M. Narayana Prasad, honorary general secretary of the Consortium of Indian Petroleum Dealers (CIPD).
The CIPD, in the past, has written to the PSU OMCs urging for the need to ensure product quality by putting in place all legal applications while blending and marketing 90 % conventional fuel with 10% ethanol, as a reformulated gasoline.
Mr. Prasad said currently, the OMC do not use blending machines as is strictly stipulated, resulting in ‘off specs’ product deliveries. Among many other shortcomings, says Mr. Prasad, the OMCs have overlooked stringent criteria of norms as stipulated in the Marketing Discipline Guidelines (MDG)-2012, the Petroleum and Explosives Safety Organisation (PESO), the Oil Industry Safety Directorate (AISD) and the Industry Quality Control Manual (IQCM) that need to be scrupulously followed to ensure success of such a move.
Tech parameters
The petroleum dealers want the OMCs to meet the technical parameters such as compatibility of the tank gauging system, including water and leak detection equipment, verifying the compatibility of the dispensing unit, installation of the rain caps on the tank, opening vent lines to prevent entry of moisture through pipelines to the underground tank, impart training to the retail outlet dealers and driveway salesmen on the new fuel properties and supply of ethanol test kits to retail units.
An official from the Indian Oil Corporation (IOC)said no such issue had been brought to their notice.
