Petrol would've hit Rs 125/litre in Delhi without ethanol blend, says govt
The Indian government claims that blending 20% ethanol into petrol saved consumers nearly Rs 30 per litre during recent global crude oil price spikes. Officials defended the program against concerns regarding food security and fuel efficiency, citing scientific validation from multiple transport and oil agencies.
Why it matters
This highlights India's strategic shift toward biofuel to reduce import dependency and manage retail fuel inflation.
NEW DELHI: Petrol in Delhi would have cost around Rs 125 a litre when global crude prices touched $135 a barrel, had oil companies not blended ethanol into the fuel, the petroleum ministry said on Friday, defending the ethanol programme against claims about its costs, food security impact, and alleged taxpayer subsidy. The ministry said consumers instead paid Rs 94.77 per litre, since ethanol — procured domestically at pre-agreed prices — made up 20% of every litre and helped insulate retail prices from the crude spike, saving nearly Rs 30 a litre at the peak of the crisis. The government held petrol and diesel prices steady for nearly 75 days after the West Asia conflict began on February 28, before raising them by Rs 7.5 a litre in May. Standard E20 petrol (91-octane) now costs Rs 102.12 a litre in Delhi, while 100-octane petrol is priced at Rs 169.
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