The Union government may dilute its share in Bharat Petroleum Corporation Ltd to 26 per cent, an issue which goes to the Cabinet Committee on Divestment, company's director (marketing) S Radhakrishnan said in Jaipur on Saturday.

"Regarding the divestment I can say that BPCL is going to be an IPO, but I do not know how much exactly the government would be diluting," he told reporters after launching company's new generation fuel 'Speed.'

Asked about the future competition from Reliance which is coming out in retail marketing of oil in a big way, he said BPCL, the second largest oil company of the country, was ready to face challenge from any competitor.

Radhakrishnan inaugurated new generation fuel 'Speed' which has multi-functional additives at a retail outlet and ‘in and out' convenience store providing opportunity to customers of combining shopping needs with fuelling pleasure in an upmarket ambience.