Three companies control virtually all of India’s petrol distribution: Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL). They are the ones who blend ethanol into petrol and deliver E20 to over 80,000 fuel stations. This article explains how E20 reaches your tank, and what happens along the way.
The oil marketing companies
India’s fuel distribution is dominated by three government-owned Oil Marketing Companies (OMCs):
| OMC | Market share (approx.) | Fuel stations |
|---|---|---|
| Indian Oil Corporation (IOC) | ~40% | ~35,000 |
| Bharat Petroleum (BPCL) | ~25% | ~21,000 |
| Hindustan Petroleum (HPCL) | ~22% | ~21,000 |
| Reliance-BP, Nayara, Shell (private) | ~13% | ~8,000 |
The OMCs procure crude oil, refine it, blend ethanol into the petrol stream, and distribute the finished product to retail outlets. They are also the entities that procure ethanol from distilleries under government-set prices.
How ethanol blending works at scale
Ethanol procurement
OMCs procure ethanol through a tendering process. The government sets the procurement price for each feedstock category (C-heavy molasses, B-heavy molasses, sugarcane juice, maize, damaged food grains). Distilleries bid to supply ethanol, and OMCs are mandated to purchase it at the fixed prices.
In Ethanol Supply Year (ESY) 2024–25, OMCs contracted approximately 700 crore litres of ethanol. The supply comes from over 350 distilleries across India, concentrated in Uttar Pradesh, Maharashtra, Karnataka, and increasingly in Bihar, Madhya Pradesh, and Haryana (maize-based).
Blending at depots
Ethanol is blended into petrol at OMC depots and terminals, not at individual fuel stations. The process:
- Base petrol arrives at the depot from refineries via pipeline, rail, or road tanker.
- Ethanol is delivered to the depot from contracted distilleries.
- Automated blending systems mix ethanol into petrol at the specified ratio (20%).
- The blended E20 is loaded into tanker trucks for delivery to retail outlets.
Quality testing occurs at the depot level. The Bureau of Indian Standards (BIS) specification IS 2796:2017 governs petrol quality, including ethanol content and other parameters.
Delivery to stations
Tanker trucks deliver the pre-blended E20 to fuel stations. The station receives the fuel into underground storage tanks and dispenses it to customers. Fuel station operators do not perform any blending themselves — the fuel arrives ready to dispense.
Quality control challenges
The blending and distribution system faces several practical challenges:
- Blend ratio accuracy: The target is 20 percent ethanol, but the actual blend at any given station depends on the depot’s blending accuracy and the ethanol supply available. During supply shortages, some batches may have less than 20 percent ethanol; during surplus, the blend is more consistent.
- Moisture contamination: Ethanol is hygroscopic. During transport and storage, the fuel can absorb moisture from the atmosphere, particularly during monsoon. Depot storage tanks, tanker trucks, and station underground tanks are all potential moisture-ingress points.
- Regional variation: Ethanol supply is not uniform across India. Sugarcane-belt states (UP, Maharashtra, Karnataka) have more ethanol availability than states without major distilleries. In supply-deficit regions, actual blending percentages may be lower.
- No consumer verification: There is no mechanism for a consumer at the pump to verify the ethanol content of the fuel being dispensed. The pump display shows volume and price, not fuel composition.
The economics for OMCs
The OMCs are both implementers and beneficiaries of the blending programme:
- Procurement cost: Ethanol is procured at ₹56–72/litre depending on feedstock. At current crude oil prices, this is comparable to or slightly higher than the petrol it replaces, depending on refining margins.
- Retail pricing: E20 is sold at the same pump price as the petrol it replaced. The OMCs do not offer a discount for the lower energy content. The consumer pays the same price per litre for fuel that delivers fewer kilometres.
- Infrastructure investment: OMCs have invested in depot-level blending equipment, ethanol storage tanks, and logistics. These costs are part of the overall programme but are not separately visible to consumers.
What happens at the pump
From the consumer’s perspective, the fuel station experience has not changed. You ask for “petrol” and get E20. There is no option to choose a different blend. The pump nozzle is the same. The price display works the same way. What changed is invisible: the fuel in the underground tank has 20 percent ethanol instead of 10 percent (or less, before blending ramped up).
Some stations display a small sticker indicating E20 or “E-20 Ethanol Blended Petrol.” Labelling requirements are minimal compared to international standards. See our article on labelling and transparency for a detailed comparison.
Can you get E0 or E10?
As of July 2026, no. The nationwide mandate means all petrol distributed through OMC channels is E20. There is no separate E0 or E10 product at any retail fuel station in India. This is unlike countries such as the United States, Brazil, or several European nations where consumers can choose between different ethanol blends.
The E20 supply chain is a massive logistical operation involving hundreds of distilleries, dozens of depots, thousands of tanker trucks, and over 80,000 fuel stations. It works — the fuel gets to the pump. But the consumer has no visibility into the blend ratio, no choice of fuel grade, and no way to verify what they are buying. The infrastructure delivers E20 efficiently; whether it delivers transparency or consumer value is a different question.