+
Ethanol Blending Averted Rs 125 Petrol Spike, Says Government
OIL & GAS

Ethanol Blending Averted Rs 125 Petrol Spike, Says Government

The Ministry of Petroleum and Natural Gas defended the Ethanol Blended Petrol programme and said retail petrol prices in Delhi could have reached around Rs 125 per litre during peak global crude spikes if ethanol blending had not been implemented. It said the measure provided nearly Rs 30 per litre in savings at the pump when the Indian crude basket rose to about USD 135 per barrel, with consumers paying Rs 94.77 per litre because 20 per cent of every litre consisted of domestically produced ethanol procured at stable pre-agreed prices. The ministry characterised the scheme as a buffer against extreme international price volatility rather than a daily cheapest fuel option.

It argued that ethanol blending strengthens India's energy security and keeps more of the country's fuel bill within the domestic economy rather than sending it overseas. The ministry pointed to the programme's role in insulating consumers from shocks during the crude price surge and in creating predictable demand for agricultural feedstock. It also addressed concerns over food security and subsidies, saying the policy is not a taxpayer subsidy but an element of national energy insurance.

The statement said the EBP programme has yielded over Rs 1.97 trillion (tn) in foreign exchange savings, substituted more than 31.6 million (mn) t of crude imports and reduced CO2 emissions by over 95 million (mn) t. These gains were presented as evidence that the blending drive both cut import bills and delivered environmental benefits.

The ministry added that the initiative has driven over Rs 1.66 tn in direct payments to farmers and distillers, helping to establish a reliable domestic marketplace for feedstock and value addition within India. It said this market support has aided rural incomes while decreasing the country's import dependence on crude oil to 88 per cent. Officials framed the programme as contributing to energy sovereignty and economic resilience amid volatile international markets.

The Ministry of Petroleum and Natural Gas defended the Ethanol Blended Petrol programme and said retail petrol prices in Delhi could have reached around Rs 125 per litre during peak global crude spikes if ethanol blending had not been implemented. It said the measure provided nearly Rs 30 per litre in savings at the pump when the Indian crude basket rose to about USD 135 per barrel, with consumers paying Rs 94.77 per litre because 20 per cent of every litre consisted of domestically produced ethanol procured at stable pre-agreed prices. The ministry characterised the scheme as a buffer against extreme international price volatility rather than a daily cheapest fuel option. It argued that ethanol blending strengthens India's energy security and keeps more of the country's fuel bill within the domestic economy rather than sending it overseas. The ministry pointed to the programme's role in insulating consumers from shocks during the crude price surge and in creating predictable demand for agricultural feedstock. It also addressed concerns over food security and subsidies, saying the policy is not a taxpayer subsidy but an element of national energy insurance. The statement said the EBP programme has yielded over Rs 1.97 trillion (tn) in foreign exchange savings, substituted more than 31.6 million (mn) t of crude imports and reduced CO2 emissions by over 95 million (mn) t. These gains were presented as evidence that the blending drive both cut import bills and delivered environmental benefits. The ministry added that the initiative has driven over Rs 1.66 tn in direct payments to farmers and distillers, helping to establish a reliable domestic marketplace for feedstock and value addition within India. It said this market support has aided rural incomes while decreasing the country's import dependence on crude oil to 88 per cent. Officials framed the programme as contributing to energy sovereignty and economic resilience amid volatile international markets.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code