E20 costlier to produce than pure petrol: Government
The Indian government clarified that E20 petrol is currently more expensive to produce than pure petrol due to global crude oil prices. However, officials emphasized that the ethanol blending program is essential for long-term energy security and protecting consumers from volatile international fuel markets.
Why it matters
This highlights the trade-offs between immediate fuel costs and long-term strategic energy independence for a major developing economy.
NEW DELHI: Petroleum and natural gas ministry on Friday said that E20 petrol is currently costlier to produce than pure petrol at prevailing global crude oil prices, but maintained that the ethanol blending programme has helped protect Indian consumers from volatile international oil prices while improving the country's long-term energy security.The clarification comes days after the centre rejected claims circulating on social media that E20 fuel damages vehicle engines, reduces mileage significantly or that the government was preparing to increase ethanol blending beyond 20 per cent without adequate testing.In a detailed clarification issued through a set of frequently asked questions (FAQs) on the Ethanol Blended Petrol Programme, the ministry said the economics of ethanol depend on global crude oil prices.It observed that maize-based ethanol is currently procured at around Rs 71.86 per litre even before GST, transportation, storage and depot handling costs."Therefore, if international crude oil is trading at around…
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