Petrol Prices Could Have Hit Rs 125/Litre, Ethanol Blending Saved Petrol Price Says Central Govt

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The Centre said petrol prices in Delhi could have touched ₹125 per litre during peak crude oil prices without ethanol blending.
Consumers paid ₹94.77 per litre as domestically produced ethanol helped cushion global price shocks.
The programme has reportedly saved ₹1.97 lakh crore in foreign exchange and reduced crude oil imports.

NEW DELHI: The ethanol blended petrol programme has helped protect Indian consumers from sharp increases in global crude oil prices, according to the Ministry of Petroleum and Natural Gas. Defending the initiative against criticism over its cost and impact on food security, the Ministry said ethanol blending played a key role in stabilising petrol prices during periods of extreme volatility in international energy markets.

The Ministry said the programme is designed to strengthen India’s energy security by reducing dependence on imported crude oil while supporting domestic fuel production.

Ethanol Blended Petrol Programme Helped Stabilise Petrol Prices

According to the Ministry, when the Indian crude basket climbed to around USD 135 per barrel, petrol prices in Delhi could have reached nearly ₹125 per litre without ethanol blending.

Instead, consumers paid ₹94.77 per litre, as 20 percent of every litre consisted of domestically produced ethanol purchased at pre-determined prices that were insulated from fluctuations in the international crude oil market.

The Ministry said the programme’s benefits extend beyond daily fuel prices by providing long-term protection against global supply disruptions and price volatility.

Programme Boosts Energy Security and Farmer Income

The Ministry highlighted several outcomes of the Ethanol Blended Petrol Programme, including:

Foreign exchange savings of more than ₹1.97 lakh crore.
Replacement of over 316 lakh metric tonnes of crude oil imports.
Reduction of more than 950 lakh metric tonnes of carbon dioxide emissions.
Direct payments exceeding ₹1.66 lakh crore to farmers and distilleries.

Officials said the initiative has also created a stable domestic market for agricultural produce while helping reduce India’s dependence on imported crude oil.

Ethanol Blended Petrol Programme Described as Energy Insurance

Rejecting allegations that ethanol blending depends on taxpayer subsidies, the Ministry said the programme should be viewed as a strategic investment in India’s energy security.