The petroleum ministry on Friday, July 1, shared that petrol prices in Delhi would have jumped to Rs 125 per litre had oil companies not blended ethanol into the fuel when global crude prices touched $135 a barrel.
Defending the E20 policy, the ministry shared that consumers paid 94.77 Rs per litre because ethanol, procured domestically at pre-agreed prices, made up 20% of every litre of fuel.
Petrol prices in India remained unchanged for nearly 2 and a half months after the war broke out in West Asia leaving global energy markets severely impacted. The prices finally had to be increased by 7.5 Rs in May as the conflict dragged on and Strait of Hormuz remained closed.
E20 (91-octane) petrol is priced at Rs 102.12 per litre in Delhi right now, while 100-octane petrol retails at Rs 169 per litre.
The ministry also dismissed reports that Food Corporation of India rice and food grains meant for welfare schemes are being used to produce ethanol.
Road Transport and Highways Minister Nitin Gadkari had earlier, on Thursday, clarified that E20 fuel doesn’t damage the engine of the car, though it may cause marginal drop in vehicle average in older BS-III vehicles.
The centre has repeatedly defended its ethanol blending policy saying the rollout has been implemented in a phased manner. They have clarified that this policyis backed by scientific studies and that automobile manufacturers continue to honour warranty claims for vehicles certified as E20-compatible.
