Like ethanol in petrol, oil companies have now begun blending 5% biodiesel into diesel. Rising crude oil prices are causing oil companies to suffer significant losses.
Diesel adulteration up to 5% begins, oil companies add biodiesel to make it cheaper
Big news has emerged regarding diesel. Oil companies have now begun adulterating diesel, just like they adulterate petrol with ethanol. Companies are adulterating diesel with up to 5% biodiesel. While crude oil is becoming more expensive globally, diesel prices remain unchanged for ordinary consumers, resulting in significant losses for companies.
Major oil companies like IOCL, BPCL, and HPCL are now blending up to 5% biodiesel with diesel. Diesel is priced at ₹95.20 per liter in Delhi, but the cost of blending biodiesel is ₹88, making it cheaper for the companies to sell. Currently, adulterated diesel is available at select pumps in Gujarat, Rajasthan, and Delhi-NCR.
Private companies made diesel and petrol expensive
It's worth noting that private companies like Nayara and Jio-bp recently increased petrol prices by 5 rupees and diesel prices by 3 rupees, while government companies have kept prices frozen. Government oil companies claim they are incurring a loss of 8 rupees per liter on petrol and 9 rupees per liter on diesel.
It's worth noting that biodiesel is made from soybeans, palm oil, and used cooking oil. The government has set a target of 5% blending in diesel by 2030. Although diesel is still adulterated, the adulteration is currently limited to 0.5%. Under BIS's IS 1460 regulations, mixing up to 5% biodiesel in diesel is not required to be disclosed. This is an additive and reduces smoke by 85%.
Why did crude oil prices increase?
Crude oil was actually $69 in February, but the West Asia crisis that erupted after the US attacks on Iran in March impacted crude oil supply. Crude oil, which was previously available at $69 per barrel, has now reached $122 per barrel in October due to supply disruptions and increased shipping charges.
Following the recent controversy over ethanol in petrol, the Indian government had ruled out the possibility of blending ethanol in diesel, but Road Transport and Highways Minister Nitin Gadkari had indicated that bio-isobutanol could be used as an alternative ingredient for blending in diesel.
