The ministry said consumers instead paid Rs 94.77 per litre because ethanol, procured domestically at pre-agreed prices, made up 20% of every litre of fuel.
Defending the government’s ethanol programme, the petroleum ministry on Friday said 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, The Times of India reported.
The ministry said consumers instead paid Rs 94.77 per litre because ethanol, procured domestically at pre-agreed prices, made up 20% of every litre of fuel.
According to the government, E20 petrol not only helped shield retail fuel prices from the spike in global crude oil prices but also saved consumers nearly Rs 30 per litre at the peak of the crisis, TOI reported.
The ministry also rejected allegations that foodgrain meant for the poor was being diverted for ethanol production or that subsidised FCI rice was being used to support the programme.
Retail fuel prices remained unchanged for about 75 days after the West Asia conflict erupted on February 28, with the government keeping petrol and diesel rates stable despite volatility in global crude markets. Prices were revised upward by Rs 7.5 per litre in May. At present, E20 (91-octane) petrol is priced at Rs 102.12 per litre in Delhi, while 100-octane petrol retails at Rs 169 per litre.
Mileage May Drop 6%, BS-III Rubber Parts At Risk
Road Transport and Highways Minister Nitin Gadkari on Thursday highlighted the issues car owners may face due to E20 fuel in the Parliament.
The minister said vehicle owners may experience a drop in mileage and that certain rubber parts in older BS-III vehicles may require replacement, while reiterating that E20 petrol does not damage engines.
In a written reply in the Lok Sabha, Gadkari said a joint study by the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM) and Indian Oil Corporation Ltd (IOCL) found that E20 may marginally reduce mileage.
Gadkari said E20 petrol can reduce vehicle fuel efficiency, lowering mileage by 2% to 6%. However, he added that the drop in mileage would depend on the vehicle category and its age.
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