Says Petrol Would Cost Rs 125/litre in Delhi Without Ethanol Blend
The Centre says ethanol blending saved consumers nearly Rs 30 per litre during the global crude price surge, while Nitin Gadkari says E20 petrol may reduce mileage by 2-6% in vehicles
01 August, 2026 – Chandigarh : Defending its ethanol blending programme amid criticism over E20 fuel, the Centre on Friday said petrol prices in Delhi would have touched Rs 125 per litre when global crude oil prices surged to $135 per barrel, had oil marketing companies not blended ethanol with petrol.
According to a governmnt’s press release, the Petroleum Ministry said consumers instead paid Rs 94.77 per litre because 20 per cent ethanol, procured domestically at pre-agreed prices, was blended with petrol under the government’s E20 programme.
The ministry said ethanol blending helped cushion consumers from the sharp rise in international crude oil prices, claiming that motorists saved nearly Rs 30 per litre at the peak of the global energy crisis.
Rejecting allegations that foodgrain meant for the poor was being diverted for ethanol production, the ministry said neither subsidised Food Corporation of India (FCI) rice nor grain earmarked for welfare schemes was being used to support the ethanol programme.
The clarification comes amid an ongoing debate over the impact of E20 petrol on vehicles, fuel efficiency and maintenance costs.
Retail petrol and diesel prices remained unchanged for about 75 days after the West Asia conflict began on February 28 despite volatility in global crude prices. Fuel prices were later increased 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.
Gadkari flags mileage drop in Parliament
The government’s defence of the ethanol programme comes a day after Nitin Gadkari acknowledged in Parliament that vehicles running on E20 petrol could witness a marginal decline in fuel efficiency.
In a written reply in the Lok Sabha on Thursday, Gadkari said a joint study conducted by the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM) and Indian Oil Corporation Ltd (IOCL) found that E20 petrol may reduce vehicle mileage by 2 per cent to 6 per cent, depending on the vehicle category and its age.
He, however, maintained that E20 petrol does not damage vehicle engines or require engine modifications.
Gadkari also said the study found that ethanol-blended petrol improves acceleration and ride quality while reducing carbon emissions by around 30 per cent.
He added that certain rubber parts and gaskets in BS-III vehicles manufactured before 2016 may require replacement when used with E20 fuel, but stressed that the blended fuel does not significantly affect overall vehicle performance.
Opposition raises concerns
The rollout of E20 petrol, comprising 80 per cent petrol and 20 per cent ethanol, has drawn criticism from opposition parties and consumer groups over its compatibility with older vehicles.
Critics have expressed concerns about reduced fuel efficiency, higher maintenance costs and possible liability in the event of engine or fuel system damage.
The Centre has defended the transition, saying the rollout has been implemented in a phased manner, is backed by scientific studies and that automobile manufacturers continue to honour warranty claims for vehicles certified as E20-compatible.
The Tribune