Govt: Ethanol Blending Helped Keep Delhi Petrol Prices Below ₹125/Litre

Without Ethanol Blending, Delhi Petrol Would Have Cost ₹125/Litre: Centre

The Centre on Friday defended its ethanol blending programme, saying petrol prices in Delhi could have touched ₹125 per litre when global crude oil prices surged to $135 a barrel, had oil marketing companies not blended ethanol with petrol.

According to the Petroleum Ministry, consumers instead paid ₹94.77 per litre because 20% of every litre of petrol comprised domestically procured ethanol, purchased at pre-determined prices. The ministry said the ethanol blend insulated retail fuel prices from volatile international crude markets and effectively saved consumers nearly ₹30 per litre during the peak of the price spike, The Times of India reported.

The ministry also rejected claims that foodgrain meant for welfare schemes was being diverted to produce ethanol or that subsidised rice supplied by the Food Corporation of India (FCI) was being used for the programme.

Fuel prices remained unchanged for around 75 days after the West Asia conflict began on February 28, despite fluctuations in global crude prices. Petrol and diesel rates were later increased by ₹7.50 per litre in May.

At present, E20 (91-octane) petrol is priced at ₹102.12 per litre in Delhi, while 100-octane petrol sells for ₹169 per litre.

Gadkari Flags Mileage Impact of E20 Fuel

A day earlier, Union Road Transport and Highways Minister Nitin Gadkari told Parliament that while E20 petrol does not damage vehicle engines, motorists may notice a slight reduction in fuel efficiency.

In a written reply in the Lok Sabha, Gadkari cited a joint study by the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM) and Indian Oil Corporation Ltd (IOCL), which found that vehicles running on E20 fuel could witness a 2% to 6% decline in mileage, depending on the vehicle’s age and category.

The study also found that E20 improves acceleration and ride quality while reducing carbon emissions by around 30%.

Gadkari added that owners of BS-III vehicles manufactured before 2016 may need to replace certain rubber components and gaskets to ensure compatibility with the higher ethanol content. However, he maintained that E20 does not significantly affect overall vehicle performance or require engine modifications.

Government Defends E20 Rollout

The rollout of E20 petrol, which contains 20% ethanol and 80% petrol, has drawn criticism from opposition parties and consumer groups over concerns about compatibility with older vehicles, reduced fuel efficiency and potential maintenance costs.

The Centre, however, has maintained that the transition has been implemented in phases, is supported by scientific studies and will help reduce India’s dependence on imported crude oil while lowering carbon emissions. It also said automobile manufacturers continue to honour warranty claims for vehicles certified to run on E20 fuel.