E20 petrol saved consumers nearly ₹30 per litre during crude price spike: Govt

The Indian government has defended its ethanol-blending policy, claiming that the introduction of E20 petrol, fuel blended with 20 percent ethanol and 80 percent petrol, saved consumers nearly ₹30 per litre during a period of global crude oil price volatility. This assertion came in an official release from the petroleum ministry, issued on Friday, following heightened scrutiny and criticism from opposition parties and consumer groups. According to the ministry, without the ethanol blend, petrol prices in Delhi would have reached approximately ₹125 per litre during the peak of the global crude oil crisis, which saw international prices climb to nearly US$135 per barrel. The ministry attributed this potential rise in prices to the absence of ethanol blending, which helped insulate domestic fuel prices from the sharp increases in global crude oil markets. Consumers instead paid ₹94.77 per litre, thanks to the inclusion of ethanol, which is produced domestically and procured at predetermined fixed prices. The government emphasized that the ethanol-blending initiative serves multiple purposes: enhancing energy security, reducing reliance on imported crude oil, supporting farmers, and maintaining food security. The rollout of E20 petrol has sparked controversy, particularly among opposition parties and consumer groups. Critics argue that the policy disproportionately affects older vehicles not designed to handle fuels with high ethanol content. Concerns have been raised regarding reduced fuel efficiency, increased maintenance costs, and the responsibility for any damage caused to engines or fuel systems. These worries have led to public demonstrations and political campaigns against the policy. The Aam Aadmi Party (AAP) launched a campaign against the E20 policy, demanding that petrol pumps provide both E20 and pure petrol options. AAP leader Arvind Kejriwal called for E20 to be priced lower than regular petrol and for the overall price of petrol to drop below ₹84 per litre. Transport unions in Delhi have also announced plans for a protest march against the ethanol-blending programme, citing the potential risks to vehicle performance and user experience. During the recent geopolitical tensions involving the United States and Iran, which significantly impacted global oil markets, the government reiterated its stance on the E20 policy. The Petroleum Ministry highlighted that the situation in the Middle East, including the blocking of the Strait of Hormuz by Iran, pushed global crude prices to record highs. Despite this, the ethanol-blended fuel kept retail prices relatively stable, offering consumers substantial savings. The government has consistently denied allegations that subsidized food grains intended for the poor are being diverted for ethanol production. Officials clarified that only surplus food grains, including damaged or broken rice unsuitable for human consumption, are used in the ethanol-making process. This approach, they argued, helps convert waste into valuable resources, supports farmers, and reduces dependency on foreign oil imports. The debate surrounding the E20 policy underscores broader discussions about balancing energy security with consumer interests and environmental sustainability. As the government continues to promote ethanol blending as a strategic measure to mitigate the impact of global oil price fluctuations, it faces mounting pressure to address the concerns of vehicle owners and consumer advocates. The outcome of this ongoing dialogue will likely influence future policies and public perception of the ethanol-blending initiative.