India begins producing ‘reference’ fuel, joins select league of nations

Source: The post is based on the article “India begins producing ‘reference’ fuel, joins select league of nations” published in “Economic Times” on 30th October 2023

Why in the News?

India has started the production of ‘reference’ grade petrol and diesel. 

What is Reference Fuel?

‘Reference’ fuels are highly specialized fuels.They are used for testing vehicles by automotive original equipment manufacturers (OEMs) and institutions engaged in automotive testing and certification.

Who has indigenously produced Reference Fuel?

Indian Oil Corporation (IOC) has indigenously developed ‘reference’ grade petrol at its Paradip refinery in Odisha and diesel at its Panipat unit in Haryana.

Reference gasoline (petrol) fuels will be available in E0, E5, E10, E20, E85, E100.

Reference diesel fuel shall be available in B7 grade.

What are the benefits of using Reference Fuel?

1.Self Reliance: India has historically depended on imports to fulfill the need for reference fuel. Now it has been produced ndigenously.This will reduce dependency on imports of reference fuel.

2.High Octane Number: Reference’ fuel has higher octane numbers (97) compared to regular (87) and premium (91) fuels, crucial for accurate vehicle testing.

– Note: Octane number is a unit to measure the ignition quality of petrol or diesel.

3.Cost Advantage: Regular petrol and diesel cost around Rs 90-96 per litre while imported ‘reference’ fuel is priced at Rs 800-850.Producing it domestically will lower the cost to about Rs 450 per litre.

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