New Delhi: The Centre has defended its ethanol blending programme amid growing criticism over E20 fuel, claiming that petrol prices in Delhi could have reached around Rs 125 per litre during the peak of the global crude oil crisis if ethanol had not been blended with petrol.
In a statement issued on Friday, the Ministry of Petroleum and Natural Gas said the government’s E20 initiative helped shield consumers from soaring international oil prices. It explained that while crude prices had surged to nearly $135 per barrel, the use of domestically sourced ethanol allowed oil marketing companies to keep petrol prices significantly lower. According to the ministry, consumers paid Rs 94.77 per litre instead of an estimated Rs 125 during that period, resulting in savings of nearly Rs 30 per litre.
The government also rejected allegations that foodgrain meant for welfare schemes was being diverted for ethanol production. It clarified that subsidised rice from the Food Corporation of India (FCI) and grains allocated under public distribution programmes were not being used for the ethanol blending programme.
The clarification comes amid an ongoing debate over the impact of E20 petrol on vehicle performance and fuel economy. Currently, E20 petrol is priced at Rs 102.12 per litre in Delhi, while 100-octane premium petrol costs Rs 169 per litre.
The discussion intensified after Union Road Transport and Highways Minister Nitin Gadkari informed Parliament that E20 fuel could reduce mileage by around 2 to 6 per cent, depending on the type and age of the vehicle. Referring to a study conducted by the Automotive Research Association of India (ARAI), Society of Indian Automobile Manufacturers (SIAM) and Indian Oil Corporation (IOCL), Gadkari said the blended fuel does not cause engine damage or require major engine modifications.
He added that E20 petrol offers better acceleration, smoother driving performance and can reduce carbon emissions by nearly 30 per cent compared to lower ethanol blends. Gadkari also noted that certain rubber components and gaskets in BS-III petrol vehicles manufactured before 2016 may need replacement for long-term compatibility with E20 fuel.
Opposition parties and consumer groups have questioned the nationwide rollout of E20 petrol, raising concerns over reduced fuel efficiency, possible maintenance costs and compatibility with older vehicles. The Centre has maintained that the transition has been introduced in phases after extensive testing and said automobile manufacturers continue to honour warranty claims for vehicles certified as E20-compatible.
