India's Ethanol Blending Program Saves Consumers ₹30 Per Litre

The Indian government has responded to criticism over its ethanol-blending program by releasing data that shows consumers are paying significantly less for petrol due to the blending. According to the Ministry of Petroleum and Natural Gas, if oil marketing companies had not added blended ethanol to petrol, petrol would have cost around ₹125 per litre in Delhi at the time when global crude oil prices reached $135 a barrel.

However, with 20% of each litre being domestically produced ethanol, consumers are paying ₹94.77 per litre, which is a saving of ₹30.23 per litre. The ministry also clarified that ethanol is not a subsidy, but rather an 'energy insurance' policy for consumers, shielding them from fluctuations in international oil prices.

The government has faced criticism over the use of E20 petrol (which contains 20% ethanol and 80% petrol), including claims that it is less efficient and that foodgrains are being diverted to make the fuel. However, the ministry played down these suggestions, stating that all grain used for ethanol must be surplus and certified as such.

The government also defended its second-generation ethanol manufacturing program from agricultural residues under Pradhan Mantri JI-VAN Yojana, saying it replaces damaged grain, broken rice, and stocks unfit for human consumption.