Ethanol blend cushions Delhi petrol prices amid global crude surge

The petroleum ministry defended India's ethanol-blended fuel policy, stating that the 20% ethanol mix in petrol limited the price in Delhi to Rs 94.77 per litre, a saving of about Rs 30 per litre compared with a projected Rs 125 without the blend when global crude peaked at $135 a barrel. The ethanol, produced domestically and purchased at pre-negotiated prices, helped shield consumers from the international price shock.

The government kept fuel prices steady for roughly 75 days after the West Asia conflict began, raising them only modestly in May. Current rates show 91-octane E20 petrol at Rs 102.12 per litre and 100-octane at Rs 169 per litre. Officials also rejected allegations that food grains intended for the poor were diverted to ethanol production or that subsidised rice from the Food Corporation of India was used for the scheme.