Centre Defends E20 Petrol, Says Ethanol Blending Saved Consumers Nearly ₹30 Per Litre

Amid the ongoing debate over E20 petrol, the Central Government has defended its ethanol blending programme, stating that consumers were protected from a steep rise in fuel prices during the global crude oil price surge. According to the government, petrol in Delhi could have reached ₹125 per litre when international crude oil prices climbed to 135 US dollars per barrel if ethanol had not been blended with petrol. The Petroleum Ministry said that under the government's E20 programme, petrol contains 20 percent domestically sourced ethanol supplied at pre-determined prices. As a result, consumers paid ₹94.77 per litre instead of the projected ₹125 per litre during the peak of the global energy crisis. The ministry maintained that ethanol blending helped shield consumers from the impact of rising international crude oil prices and claimed that motorists saved nearly ₹30 per litre during that period. Responding to allegations that food grains meant for the poor were being diverted for ethanol production, the ministry clarified that neither subsidised Food Corporation of India (FCI) rice nor grain reserved for welfare schemes is being used to support the ethanol blending programme. The clarification comes as concerns continue over the impact of E20 petrol on vehicle performance, fuel efficiency, and maintenance costs. Despite fluctuations in global crude oil prices following the outbreak of the West Asia conflict on February 28, retail petrol and diesel prices remained unchanged for nearly 75 days. Fuel prices were later increased by ₹7.5 per litre in May. At present, E20 (91-octane) petrol is priced at ₹102.12 per litre in Delhi, while 100-octane petrol is being sold at ₹169 per litre. Gadkari Acknowledges Slight Drop in Mileage The government's defence of the ethanol programme came a day after Union Minister Nitin Gadkari acknowledged in Parliament that vehicles running on E20 petrol may experience a slight reduction in fuel efficiency. In a written reply in the Lok Sabha, Gadkari cited a joint study conducted by the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM), and the Indian Oil Corporation Limited (IOCL). According to the study, vehicle mileage may decrease by 2 to 6 percent, depending on the type and age of the vehicle. However, Gadkari said that E20 petrol does not damage vehicle engines and does not require engine modifications. He also stated that ethanol-blended fuel can reduce carbon emissions by around 30 percent while improving acceleration and ride quality. He further noted that BS-III vehicles manufactured before 2016 may require replacement of certain rubber components and gaskets when using E20 fuel, but stressed that the blended fuel does not significantly affect the overall performance of vehicles. Opposition Raises Concerns The rollout of E20 petrol, which contains 80 percent petrol and 20 percent ethanol, has faced criticism from opposition parties and consumer groups over its compatibility with older vehicles. Critics have expressed concerns regarding reduced fuel efficiency, higher maintenance costs, and possible engine or fuel system damage. 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 E20-compatible certified vehicles.