Petrol prices could have hit Rs 125/Litre without ethanol blending, says Govt
New Delhi, August 1
Defending the Ethanol Blended Petrol Programme against criticism over costs and food security, the Ministry of Petroleum and Natural Gas stated on Friday that retail petrol prices in Delhi could have surged to around ₹125 per litre during peak global crude oil spikes if India had not implemented ethanol blending.
Highlighting the substantial financial relief provided to citizens amidst international market volatility, the Ministry of Petroleum and Natural Gas stated, "The result? Nearly ₹30 per litre in savings at the pump during the peak of the crisis. The value of ethanol blending is not about being the cheapest fuel every day. It is about protecting Indian consumers from extreme volatility in global oil markets, strengthening India's energy security, and keeping more of the country's fuel bill within the Indian economy rather than sending it overseas."
While the Indian crude basket surged to around USD 135 per barrel, consumers paid ₹94.77 per litre because 20% of each litre consisted of domestically produced, stably priced ethanol insulated from global shocks.
In a press release, the ministry said that when the Indian crude basket rose to around USD 135 per barrel, petrol without ethanol blending was "projected to cost around ₹125 per litre in Delhi." Instead, it said consumers paid Rs 94.77 per litre because "20 per cent of every litre was domestically produced ethanol, procured at stable, pre-agreed prices that were insulated from the global crude price spike."
The EBP Programme has yielded over ₹1.97 lakh crore in foreign exchange savings, substituted more than 316 lakh metric tonnes of crude imports, and reduced CO₂ emissions by over 950 lakh metric tonnes.
The ministry also rejected the claim that ethanol blending survives on taxpayer subsidies. "Ethanol blending isn't a taxpayer subsidy. It's India's energy insurance and it has already delivered when the crisis hit," it said.
The initiative has driven over ₹1.66 lakh crore in direct payments to farmers and distillers, establishing a reliable domestic marketplace for agricultural produce while cutting down India's 88% import dependency on crude oil.
— ANI
Reader Comments
As someone who travels to India frequently for work, I've seen how this policy has helped stabilize fuel prices compared to other countries. It's a smart approach to energy security, especially when you're 88% dependent on imports. Other nations could learn from this example.
I appreciate the savings at the pump, but we still need to address the food security concerns. Using food grains for fuel while many families struggle with food inflation is a bit worrying. Hope they're looking at using more non-food sources like agricultural waste for ethanol production.
₹1.97 lakh crore in foreign exchange savings? That's massive! This is real 'Make in India' – we're literally making our fuel at home now. My uncle's sugarcane farm in UP has been getting steady payments from the local distillery. The benefits are reaching the grassroots level for sure. 👏
The environmental benefits are equally impressive – 950 lakh metric tonnes of CO2 reduction is no small feat. It's refreshing to see a policy that looks at both economic and environmental sustainability. India is really stepping up its climate game while protecting its citizens from price shocks.
I'm not entirely convinced. At the end of the day, we're still paying around ₹95 per litre which is not cheap. And what about those who can't afford new cars that are E20 compliant? The savings story sounds good in theory, but the real impact on common man's pocket needs more scrutiny. 🤔
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.