New Delhi: The Union Ministry of Petroleum and Natural Gas has said petrol prices could rise sharply if ethanol is not blended with petrol.
In a statement, the government said the objective of ethanol blending is to keep fuel affordable, protect consumers from global crude oil price fluctuations, and reduce the outflow of money spent on fuel imports.
It warned that if ethanol blending is not carried out, petrol prices could reach Rs 125 to Rs 130 per litre. The ministry added that if crude oil touches USD 135 per barrel, a price rise would be difficult to avoid.
The statement noted that when international crude prices climb, blending petrol with 20% ethanol (E20) can help save about Rs 30 per litre. It said that without allowing ethanol blending, consumers would have to bear the impact of higher prices.
The clarification comes amid criticism and debate over E20 petrol.
