Oil Prices: A Question Of Credibility
· Free Press Journal
Karnataka’s claim that Oil Marketing Companies (OMC) sold petrol with far higher rates of ethanol blending than officially allowed, altering the quality of the automotive fuel and potentially damaging millions of vehicles, is a serious charge that warrants a transparent and credible response from the Union government. Unlike bald allegations that are the normal fare of vituperative exchanges between political opponents, the gauntlet has been thrown by Chief Minister DK Shivakumar and reiterated by the Leader of the Opposition, Rahul Gandhi, asserting that a specific testing protocol is being followed. The test samples have been drawn from 67 locations and sent to laboratories accredited by national and international agencies. Data generated by Karnataka seem to show a pattern of undeclared and excessive blending of ethanol with petrol, rising to as much as 31.5% in one OMC’s costly premium-grade fuel. As this paper noted earlier, vehicles specifically engineered for higher ethanol blending rates, such as E85 or even E100, may be able to perform satisfactorily with more hydrous fuel, but the current fleet almost entirely is not optimised for that. Losses to vehicle owners could range from a noticeable drop in mileage, of a reported 10%, to engine dysfunction that requires expensive repairs. It would seem appropriate, if Karnataka’s findings are found accurate, to demand compensation from the OMCs, which are expected to maintain the claimed purity of fuel.
Automotive fuel has, in the past, fallen victim to charlatanism in India, with sensational claims a couple of decades ago of ‘herbal petrol’ being produced with native genius. Although that proved to be nothing more than criminal fraud, the fuel that OMCs dispense cannot afford to compromise on quality that people implicitly trust. Retail petrol outlets are normally under scrutiny for adulteration, but in this case Karnataka’s claim is that the official product itself is not what it claims to be. Blended petrol with lower mileage causes a real loss to the motorist who pays the same price for the fuel that was charged before the enhanced blending programme began with a 20% limit. India’s response to its high petroleum bill, which imposes a drag on its balance of payments, should be founded on a transition away from fossil fuels. Here, it is heartening that electric three-wheelers have witnessed significant sale hikes in the past couple of years, touching 3.19 lakh registered EVs in mid-2026. Raising fuel efficiency standards for all vehicles and encouraging electrification are two of the three prongs to meet national commitments on greenhouse gas emissions until 2030, along with biofuels, the International Energy Agency says. After that will come gains accruing from sustained electrification. The quest should be an orderly transition, addressing both demand and supply-side solutions. Making secret shortcuts to fuel composition would erode the credibility of the national effort.
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