New Delhi: The Centre has defended its ethanol blending programme, stating that petrol prices in Delhi could have climbed to ₹125 per litre if ethanol had not been blended with petrol during a period of sharp global crude oil price increases. According to the Ministry of Petroleum and Natural Gas, the use of E20 fuel, which contains 20 per cent ethanol, helped keep retail fuel prices significantly lower despite international market volatility.
The ministry said that when global crude oil prices touched 135 US dollars per barrel, domestic consumers paid ₹94.77 per litre for petrol because ethanol, sourced within India at pre agreed prices, formed one fifth of every litre of fuel sold. It added that ethanol blending reduced the impact of rising crude prices and saved consumers nearly ₹30 per litre during the peak of the global energy crisis.
The government also rejected allegations that food grains meant for welfare schemes or subsidised rice supplied by the Food Corporation of India were being diverted for ethanol production. It maintained that the ethanol programme has been implemented responsibly without affecting food security.
Retail fuel prices remained largely unchanged for around 75 days following the escalation of tensions in West Asia before being revised upward by ₹7.50 per litre in May. At present, E20 petrol is priced at ₹102.12 per litre in Delhi, while 100 octane petrol retails at ₹169 per litre.
Meanwhile, Union Road Transport and Highways Minister Nitin Gadkari informed Parliament that vehicles running on E20 petrol may experience a 2 to 6 per cent reduction in mileage, depending on the vehicle’s age and category. He also noted that certain rubber components and gaskets in older BS III vehicles manufactured before 2016 may require replacement when using E20 fuel.
However, Gadkari clarified that E20 petrol does not damage vehicle engines or require major engine modifications. Studies conducted by automotive research agencies found that ethanol blended fuel can improve acceleration and driving performance while reducing carbon emissions by nearly 30 per cent.
The rollout of E20 petrol has sparked debate over its compatibility with older vehicles and its impact on fuel efficiency. The Centre has maintained that the transition has been introduced in phases, is supported by scientific research and continues to be backed by automobile manufacturers through warranty support for E20 compatible vehicles.
