New Delhi, August 1: Addressing recent public discourse surrounding the E20 fuel initiative, the Centre affirmed that integrating 20 per cent ethanol into retail petrol provided vital economic insulation against international market disruptions. The Ministry of Petroleum and Natural Gas noted that domestic retail prices remained near ₹94.77 per litre during peak global crude spikes, whereas unblended petrol would have surged to nearly ₹125 per litre in the national capital following supply bottlenecking at the Strait of Hormuz.
The official response comes amid criticisms from opposition representatives and motor vehicle users regarding engine compatibility and reduced mileage. Responding to concerns regarding raw material sourcing, ministry representatives asserted that subsidised grain allocations meant for public welfare remain completely untouched, with distilleries utilizing only non-consumable, broken, or surplus grains.
Defining the core purpose of the program, the Centre declared that ethanol blending serves as “India’s energy insurance” by curbing heavy reliance on foreign oil imports and shielding domestic household budgets from external shocks. Officials maintained that boosting domestic biofuel capacity strengthens the agricultural sector, retains capital within the national economy, and guarantees long-term energy resilience against future international crises.
