New Delhi: The Union Petroleum Ministry has said that ethanol blending in petrol has helped shield consumers from spikes in global crude oil prices, keeping retail rates in check.
According to the ministry, even when international crude prices climbed sharply, the 20% ethanol blending programme ensured that petrol in Delhi remained at Rs 94.77 per litre. Without the blending, the ministry said, the price could have risen to around Rs 125 per litre.
The government has been implementing ethanol blending to reduce dependence on imported crude, create a market for domestic agricultural produce and help stabilise fuel prices. E20 petrol—fuel blended with 20% ethanol—is currently being sold in several parts of the country.
In its statement, issued amid what it called misleading information circulating on social media about E20, the ministry said ethanol is procured domestically at pre-fixed prices. It added that the programme delivered savings of up to Rs 30 per litre for consumers when crude prices were at their peak.
The ministry also rejected allegations that food grains meant for the poor or subsidised rice supplied through the Food Corporation of India were being diverted for ethanol production. It further noted that despite sharp volatility in global crude prices for 75 days after conflict broke out in West Asia, the government did not change retail prices of petrol and diesel.
