Government defends ₹71/litre ethanol blending as crude costs pressure petrol retail economics
The government says ethanol blending supports energy security, farmer incomes and fuel-price cushioning despite OMC ethanol procurement costs of about ₹71/litre. It cites crude-price volatility, estimated petrol under-recoveries of ₹11/litre and E20 use across more than 23 crore vehicles.
The government defended ethanol blending despite roughly ₹71/litre procurement costs, citing energy security, lower crude-import dependence, farmer support and fuel-price cushioning. It said E20 has been tested extensively and reported no verified widespread engine failures among over 23 crore vehicles.
Why this matters
The defence extends the government’s recent ethanol messaging, which said E20 kept petrol below ₹125/litre and warned older vehicles may see lower mileage.
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