Ethanol Blending Saved Delhi Petrol Prices From Reaching INR 125, Cut Costs by INR 30 per Litre During Global Crude Spikes: Government
Petrol in Delhi would have cost Rs 125 per litre without ethanol blending during global crude spikes, according to the petroleum ministry. As per a The Times of India report, domestic ethanol helped insulate retail prices, saving nearly Rs 30 a litre while addressing concerns regarding vehicle efficiency and food security.
Petrol prices in Delhi would have surged to approximately Rs 125 per litre during peak global crude oil spikes had oil marketing companies not blended domestic ethanol into the fuel, according to the petroleum ministry. The ministry defended the ethanol initiative against criticisms concerning costs, potential food security impacts, and taxpayer subsidies.
As per a report by The Times of India, consumers paid Rs 94.77 per litre because domestic ethanol made up 20% of every litre, insulating retail prices from crude shocks and saving nearly Rs 30 per litre at the height of the crisis. Government data shows that standard E20 petrol now retails at Rs 102.12 per litre in Delhi, following a price adjustment after retail rates were held steady for nearly 75 days following a West Asian conflict. E20 Petrol Reduces Mileage by up to 6%, No Evidence of Engine Failures, Says Nitin Gadkari.
Addressing Food Security and Subsidies
The ministry explicitly denied allegations that foodgrains intended for impoverished populations were being diverted for ethanol production, or that subsidised Food Corporation of India rice was supporting the programme. Officials emphasized that the Ethanol Blended Petrol programme was introduced through a phased and scientifically validated process.
Production levels and blending targets were scaled up gradually alongside domestic manufacturing capacity and infrastructure development. Stakeholders from the sugar and grain sectors, along with automakers and oil companies, were consulted extensively prior to implementation.
Vehicle Efficiency and Engine Performance
Regarding concerns over fuel efficiency, the road transport ministry highlighted a study conducted by ARAI, SIAM, and IOC indicating that older vehicles designed for E10 fuel may experience a minor efficiency reduction of 2 to 6 percent when running on E20 blends. An earlier statement presented in the Rajya Sabha estimated this reduction to be between 3 and 5 percent. E20 Petrol May Harm BS-III Vehicle Rubber Parts and Gaskets, Nitin Gadkari Clarifies No Major Engine Issues.
Road transport minister Nitin Gadkari confirmed to the Lok Sabha that vehicle fuel systems, engine durability, and emissions performance were thoroughly validated before the shift. Furthermore, authorities noted that over 20 crore two-wheelers and 3 crore petrol cars have operated on these blends without verified evidence of engine failure linked to ethanol.
(The above story first appeared on LatestLY on Aug 01, 2026 05:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).