Ethanol Blending Saves Consumers ₹30 Per Liter, Claims Indian Government

The Indian government claims that ethanol blending has saved consumers ₹30 per liter on petrol. This is because domestically procured ethanol, purchased at pre-determined prices, constitutes 20% of every liter of petrol.

When crude oil prices reached $135 per barrel in the international market, if oil companies had not blended ethanol in petrol, the price of petrol in Delhi would have reached approximately ₹125 per liter.

The Ministry of Petroleum stated this while responding to claims related to the cost of the ethanol program and its impact on food security. The ministry clarified that this program saved approximately ₹30 per liter on petrol during the crisis.