Indian Oil, Bharat Petroleum and Hindustan Petroleum have issued a joint tender for 150,000 kilolitres of B100 biodiesel, or 150 million litres, for November 2026 to January 20271. The tender was issued on 30 October. It fixes the basic price at ₹88 per litre, before 5% GST and distance-based freight, and bids close on 7 November1.
At that rate the base value of the whole requirement is about ₹1,320 crore, before transport and GST, according to The Economic Times, which reported the tender terms1.
The purchase covers biodiesel made from used cooking oil (UCO) and other feedstocks, including non-UCO sources1.
Winter grades across 85 delivery points
Supply must reach 85 OMC locations. Of the total, 98,286 kilolitres must meet a maximum cold filter plugging point of 6°C. That is the temperature at which fuel starts to clog filters. Another 51,714 kilolitres may have a maximum of 12°C1.
Only suppliers already empanelled by the OMCs can bid, and each bid must offer at least 100 kilolitres. UCO-based fuel needs IS 15607 type certification and a separate certificate from CSIR-Indian Institute of Petroleum, Dehradun1.
The winner must lodge a security deposit of 3% of the basic value of its allocated volume and pay for transport and transit insurance. Payment is due within 21 days of receipt of material and documents1.
Suppliers that deliver less than 90% of a prorated monthly indent, or less than 95% of the overall prorated requirement, face a 3% cut in the basic price on the short-supplied volume. OMCs may move up to 20% of an allocation to another delivery location and take up to 10% extra by mutual consent1.
No blending ratio and no company volumes
The tender does not specify a biodiesel blending ratio in diesel, nor how much each of the three companies will buy. Allocations will depend on qualified bids and later orders, ET reported1.
India has already met its 20% ethanol blending target in petrol and is now trying to speed up biodiesel use in diesel to cut crude imports1. Petroleum Minister Hardeep Singh Puri said on 27 October that the government has no plan to raise ethanol blending in petrol above 20%2. PPAC puts ethanol blending at 20.00% for the ethanol supply year from November 2025 to September 20263.
The import bill is the backdrop. Brent crude was $123.10 a barrel on 27 October, up 87.9% from a year earlier, according to US Energy Information Administration data4.
A price beside the export benchmark
For a reference point outside India, Rotterdam's B100 price was $1,182 per tonne on 29 October. It had fallen by about $182 per tonne in a month and sat $265 per tonne below the port's low-sulphur marine gasoil at $1,447 per tonne, according to ENGINE data5.
The two numbers are on different bases. The Indian price excludes GST and freight, and the fuel must meet the IS 15607 standard1. The Rotterdam figure is a bunker price at one port5.
The feedstock side is a separate argument. The Sustainable Aviation Fuel Association (SAFA) has proposed a government-backed UCO price stabilisation fund, possibly supported by a cess on edible oil imports, and a minimum price for certified UCO6.
"SAFA has proposed a minimum price (floor price) for certified UCO to make collection commercially viable, rather than a price ceiling on EPR certificates," Secretary General Rohit Kumar said6.
The tender sets a basic price for biodiesel. SAFA's request is a floor for certified UCO, the feedstock that collectors sell on to fuel makers1, 6.