Ethanol kept petrol prices lower: Govt
The Indian petroleum ministry claims that ethanol blending in petrol has successfully shielded consumers from high global crude oil prices. The government defended the program against criticisms regarding food security and subsidies, stating it saved consumers approximately Rs 30 per litre.
Why it matters
This highlights India's strategic shift toward biofuel integration to manage energy costs and reduce import dependency amidst global market volatility.
NEW DELHI: Petrol would have cost around Rs 125 a litre in the national capital when global crude prices touched $135 a barrel had oil companies not blended ethanol into the auto fuel, the petroleum ministry said on Friday, defending the programme against what it described as "misleading" claims about its costs, impact on food security and alleged taxpayer subsidy. It said consumers paid Rs 94.77 per litre because 20% of every litre comprised domestically produced ethanol procured at pre-agreed prices, helping shield retail fuel prices from the global crude price spike.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in