New Delhi, August 1: The Ministry of Petroleum and Natural Gas declared that India’s E20 ethanol-blending policy successfully shielded domestic consumers from severe international crude oil price shocks, preventing retail petrol rates in Delhi from reaching approximately ₹125 per litre. During a recent period of geopolitical friction in West Asia that saw global crude oil benchmarks surge to nearly USD 135 per barrel, consumers paid about ₹94.77 per litre because 20 per cent of fuel supplies comprised domestically sourced ethanol.
Addressing public queries regarding the nation’s energy strategy, government officials described the ethanol-blending program as “India’s energy insurance”, maintaining that the initiative functions as a strategic safeguard against global market volatility rather than a taxpayer-funded subsidy. With India importing nearly 85 per cent of its crude oil requirements, the domestic procurement of ethanol at stable prices helped absorb severe supply disruptions caused by maritime blockades along critical international shipping corridors like the Strait of Hormuz.
The official clarification addressed concerns raised by consumer groups and vehicle owners regarding fuel efficiency and maintenance requirements in older automotive models. While acknowledging minor variations in mileage, the ministry affirmed that the overall economic stability and national energy security delivered by the policy outweigh operational trade-offs. Furthermore, officials dismissed assertions regarding the diversion of public food reserves, stating that ethanol production relies exclusively on surplus, damaged, or broken foodgrains unfit for human consumption, thereby ensuring full protection of food security welfare schemes.
