Sri Vijaya Puram, July 31: The Union government on Friday said India’s ethanol blending programme played a key role in protecting consumers from steep fuel price increases during the recent West Asia crisis, claiming that petrol in Delhi could have cost around Rs 125 per litre without the initiative.
According to the Ministry of Petroleum and Natural Gas, the price estimate was based on a period when the Indian crude oil basket rose to nearly $135 per barrel during the crisis. The ministry said that without ethanol blending, the retail price of petrol in the national capital was projected to reach around Rs 125 per litre. Instead, consumers paid Rs 94.77 per litre because 20 per cent of every litre of petrol comprised domestically produced ethanol procured at stable, pre-agreed prices.
The ministry stated that the Ethanol Blended Petrol (EBP) Programme helped cushion the impact of global crude oil price volatility by reducing dependence on imported fuel while keeping a larger share of India’s fuel expenditure within the domestic economy.
According to the government, the programme is designed to balance energy security, food security and farmer welfare. It said only surplus grain certified by the Department of Food and Public Distribution, after meeting all food security obligations, is approved for ethanol production.
The ministry further stated that grain earmarked for the Public Distribution System, the National Food Security Act, welfare schemes and mandatory buffer stock requirements is not diverted for ethanol production before national food security needs are fulfilled.
It also said the programme utilises damaged grain, broken rice and foodgrain considered unfit for human consumption for ethanol production.
Highlighting the broader impact of the initiative, the ministry said the Ethanol Blended Petrol Programme has helped India save more than Rs 1.97 lakh crore in foreign exchange by reducing crude oil imports. It also stated that the programme has prevented the emission of more than 950 lakh metric tonnes of carbon dioxide.
The ministry added that the programme has resulted in payments exceeding Rs 1.66 lakh crore to farmers and distillers, creating what it described as a stable domestic market for agricultural produce.
The government maintained that ethanol blending remains an important component of India’s long-term energy strategy as the country continues to rely on imports for nearly 88 per cent of its crude oil requirement. According to the ministry, increasing the share of domestically produced ethanol in petrol acts as a safeguard against global oil price fluctuations while strengthening India’s energy security and reducing exposure to international crude market volatility.
