India's Ethanol Blended Petrol Programme Saves Consumers ₹30 per Litre

The Indian government has defended its Ethanol Blended Petrol (EBP) Programme against criticism, citing savings of nearly ₹30 per litre at the pump during the peak of the global oil price crisis. The programme resulted in consumers paying ₹94.77 per litre when the Indian crude basket touched around US$135 per barrel.

Without ethanol blending, petrol prices in Delhi would have risen to around ₹125 per litre, according to the government. The EBP Programme has generated foreign exchange savings of more than ₹1.97 lakh crore and substituted over 316 lakh metric tonnes of crude oil imports.

The programme is aimed at reducing India's dependence on imported crude oil, which currently meets nearly 88% of the country's oil requirement. Ethanol blending is also seen as a way to insulate consumers from global oil market shocks.