Ethanol Blending Saves India ₹95/Litre Petrol Price Cap Amid Global Turmoil
India's Ethanol Blending Program Has Capped Petrol Prices at ₹95/Litre
Union Minister Nitin Gadkari credited the country's ethanol blending program with capping petrol prices at ₹95 per litre, preventing them from reaching a staggering ₹125 per litre during recent global tensions. The program has saved significant foreign exchange and provided stability for consumers by substituting crude oil imports.
The initiative, now utilizing E20 fuel containing 20% ethanol, has also contributed ₹1.66 lakh crore in income for Indian farmers. This is part of the Ethanol Blended Petrol (EBP) program, a core component of India's long-term energy security plan aimed at reducing the nation's reliance on crude oil imports.
According to official data, while international prices surged by 70-80% since February 2026, domestic petrol retail prices saw a much smaller increase of 7-8%. The government noted that oil marketing companies (OMCs) were able to procure ethanol at approximately ₹70 per litre, which helped keep the ex-Delhi price of petrol at ₹94.77 per litre.
The EBP program has generated over ₹1.66 lakh crore in additional income for farmers and led to cumulative foreign exchange savings of roughly ₹1.98 lakh crore through the substitution of imported crude with domestic ethanol. The Ministry of Petroleum & Natural Gas has reported no evidence of widespread mechanical issues with vehicles using E20 fuel.