Ethanol Blending Saves Delhi Petrol Prices from Reaching INR 125

Petrol prices in Delhi may have reached as high as Rs 125 per litre without ethanol blending during global crude oil spikes, according to the petroleum ministry. However, domestic ethanol helped insulate retail prices, saving nearly Rs 30 a litre.

The petroleum ministry defended the ethanol initiative against criticisms concerning costs and potential food security impacts. Government data shows that standard E20 petrol now retails at Rs 102.12 per litre in Delhi, following a price adjustment after retail rates were held steady for nearly 75 days.

The ministry denied allegations that foodgrains intended for impoverished populations were being diverted for ethanol production. Officials emphasized that the Ethanol Blended Petrol programme was introduced through a phased and scientifically validated process, with stakeholders from the sugar and grain sectors consulted extensively prior to implementation.