Government Says Ethanol Helped Keep Petrol Prices Lower
The Central Government has defended India’s Ethanol Blended Petrol (EBP) Programme, stating that petrol prices could have touched nearly ₹125 per litre in Delhi if ethanol had not been blended with petrol during periods of high global crude oil prices.
According to the Ministry of Petroleum and Natural Gas, when international crude oil prices surged to around $135 per barrel, ethanol blending played a crucial role in reducing the impact on consumers by lowering dependence on imported crude oil and helping stabilise retail fuel prices.
The statement comes amid growing public debate over the benefits and drawbacks of E20 petrol.
How Ethanol Blending Reduced Fuel Costs
The government says blending ethanol with petrol reduces the amount of crude oil required to produce fuel. Since ethanol is produced domestically, it lowers India’s dependence on imported oil, which becomes particularly beneficial when global crude prices rise sharply.
Officials estimate that without the ethanol blending programme, consumers in Delhi could have paid around ₹125 per litre for petrol during the peak in crude oil prices. The ministry argues that the programme has not only helped moderate fuel prices but also strengthened India’s energy security and reduced foreign exchange outflow.
Government Rejects Criticism Of E20 Fuel
The Ministry has also responded to concerns regarding E20 petrol, including claims that it significantly reduces mileage, damages engines, affects food security, or places an unfair financial burden on taxpayers.
According to the government, extensive testing, vehicle manufacturer approvals, and years of phased implementation have not revealed any widespread engine failures linked to E20 fuel. Officials maintain that any reduction in fuel economy in older vehicles is generally limited and is offset by cleaner combustion, better engine performance, and reduced emissions.
The government has also clarified that there is currently no decision to increase ethanol blending beyond the existing 20% level.
Benefits Beyond Fuel Prices
Apart from helping stabilise petrol prices, the ethanol blending programme has contributed to lower crude oil imports, improved income for farmers through ethanol production, and reduced carbon emissions. The government believes these benefits make the programme an important component of India’s long-term energy and environmental strategy.
With India having already achieved its 20% ethanol blending target, the focus now remains on improving efficiency while continuing scientific evaluation before considering any future increase in blending levels.
Summary
The Central Government has stated that petrol prices could have reached nearly ₹125 per litre without the ethanol blending programme during periods of high crude oil prices. Officials say E20 fuel has helped reduce import dependence, stabilise fuel prices, improve farmer incomes, and cut emissions, while dismissing concerns over widespread engine damage or significant mileage loss.
