The Centre has defended its ethanol blending programme, claiming petrol prices in Delhi would have soared to Rs 125 per litre had oil marketing companies not blended ethanol into fuel when global crude oil prices peaked at $135 a barrel.
According to the Petroleum Ministry, consumers instead paid Rs 94.77 per litre as ethanol accounted for 20% of every litre of petrol. The ministry said the domestically sourced ethanol, purchased at pre-agreed prices, helped cushion consumers from the impact of volatile global crude prices.
Centre defends ethanol blending
The government said ethanol blending saved motorists nearly Rs 30 per litre at the height of the global fuel price crisis. It also rejected allegations that foodgrain meant for welfare schemes or subsidised rice supplied by the Food Corporation of India (FCI) was diverted for ethanol production.
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Retail fuel prices remained unchanged for around 75 days after the West Asia conflict began on February 28 despite fluctuations in global crude oil prices. Petrol and diesel prices were later increased by Rs 7.5 per litre in May. Currently, E20 (91-octane) petrol costs Rs 102.12 per litre in Delhi, while 100-octane petrol is priced at Rs 169 per litre.
Gadkari flags mileage impact of E20 fuel
The Centre’s clarification comes a day after Union Road Transport and Highways Minister Nitin Gadkari informed Parliament that E20 petrol could reduce vehicle mileage by 2% to 6%, depending on the vehicle’s age and category.
According to a joint study by the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM) and Indian Oil Corporation Ltd (IOCL), Gadkari said E20 petrol does not damage engines. However, he noted that some rubber parts and gaskets in BS-III vehicles manufactured before 2016 may require replacement after prolonged use.
The study also found that ethanol-blended petrol improves acceleration, enhances ride quality and reduces carbon emissions by around 30%.
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Debate over E20 rollout continues
The rollout of E20 petrol, which contains 20% ethanol and 80% petrol, has faced criticism from opposition parties and consumer groups over concerns about reduced fuel efficiency, higher maintenance costs and compatibility with older vehicles.
The Centre, however, has maintained that the transition has been implemented in phases, is backed by scientific studies and that automobile manufacturers continue to honour warranty claims for vehicles compatible with E20 fuel.
FAQS
Why did the Centre mention Rs 125 petrol?
The Centre said petrol in Delhi could have reached Rs 125 per litre without ethanol blending during the crude oil price surge.
What is E20 petrol?
E20 petrol is a blend of 20% ethanol and 80% petrol, introduced to reduce fuel imports and emissions.