India's Ethanol Blended Petrol Programme Saves Rs 1.97 Lakh Crore, Denies Foodgrain Diversion Claims
The Indian government has defended its Ethanol Blended Petrol (EBP) programme against criticism, citing significant benefits in terms of foreign exchange savings and reduced petrol prices. According to the petroleum ministry, the EBP programme has saved over Rs 1.97 lakh crore in foreign exchange and cut carbon dioxide emissions by more than 950 lakh metric tonnes.
The ministry stated that during the recent crude price surge, ethanol blending helped reduce petrol prices in Delhi by nearly Rs 30 a litre. Petrol without blending was projected to cost around Rs 125 per litre when the Indian crude basket rose to about $135 a barrel. However, consumers paid only Rs 94.77 a litre.
The government has also denied allegations that foodgrain meant for the poor is being diverted to ethanol production. Road transport minister Nitin Gadkari told the Lok Sabha that automakers, oil marketing companies and the sugar and grain industries were consulted during the shift to E20 blending levels, which were raised in phases as distillery capacity and infrastructure expanded.
Lab studies and real-world data show no adverse impact on vehicle performance from E20, with over 20 crore two-wheelers and more than 3 crore petrol cars running on the blends without verified evidence of engine failure linked to ethanol.