New Delhi: The Centre Thursday defended its ethanol-blending programme in Parliament, asserting that E20 petrol does not adversely affect “legacy vehicles”, arguing that the ethanol policy played a critical role in protecting Indian consumers as crude prices surged globally during the ongoing West Asia crisis.
In a written reply to a question by DMK MP Dr T Sumathy in Lok Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said petrol prices could have climbed to around Rs 125 per litre when the Indian crude basket touched nearly $135 a barrel at the peak of the West Asia conflict.
Instead, he stated that consumers in Delhi continued to pay Rs. 94.77 per litre, aided by government interventions, diversified crude sourcing and the availability of domestically produced ethanol procured by oil marketing companies (OMCs) at about Rs 70 per litre.
“The market price of petrol could have been around Rs 125 per litre. However, Indian consumers continued to pay only Rs 94.77 per litre (Delhi), also because OMCs could procure ethanol at around Rs 70 per litre,” the minister stated in the written reply.
The government also rejected concerns that higher ethanol blending harms older vehicles, saying extensive laboratory testing, field trials and real-world operating experience have found no adverse impact on vehicle performance or abnormal wear and tear in legacy vehicles running on E20 fuel.
The studies, it said, were conducted in consultation with the Automotive Research Association of India (ARAI), Society of Indian Automobile Manufacturers (SIAM), Indian Oil Corporation, Indian Institute of Petroleum and automobile manufacturers before E20 was rolled out.
Backing the claim with field data, the ministry said E15 petrol has been widely used for over three-and-a-half years and E19-E20 fuel for more than two-and-a-half years. Over 20 crore two-wheelers and over 3 crore petrol cars have been operating on these blends without any verified evidence of widespread engine failures attributable to ethanol blending, the reply stated.
According to the government, car service data of manufacturers also showed no abnormal corrosion, wear or reduction in vehicle life due to E20 fuel.
“A leading OEM (Original Equipment Manufacturer) serviced 2.84 crore vehicles during FY2025-26, including around 1.5 crore vehicles that were not originally certified as E20-compatible, and reported no E20-linked corrosion, abnormal wear or reduction in component life,” the minister stated.
The ministry also addressed concerns over ethanol production costs, stating that public sector OMCs (oil marketing companies) procure ethanol under a framework designed to ensure adequate supplies, provide remunerative prices to producers and support the agriculture sector, rather than maximise company profits.
For the current Ethanol Supply Year 2025-26 (November 2025 to October 2026), the weighted average ethanol price stands at Rs. 66.61 per litre. The procurement costs for oil marketing companies (IOCL, HPCL and BPCL) including GST and transportation is estimated at around Rs 71.1 per litre.
The government further said that India, which imports nearly 85 percent of its crude oil, has reduced its exposure to volatile international oil prices and exchange rate fluctuations by replacing part of imported petrol with domestically produced ethanol.
It described ethanol blending as a strategic investment in energy security, price stability, farmer welfare and foreign exchange savings, rather than a revenue generating scheme for OMCs.
(Edited by Ajeet Tiwari)
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