Centre explains why E20 ethanol-blended fuel is priced higher than pure petrol
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India's ethanol blending programme dates back to a pilot project in 2001, followed by a formal policy in 2013. However, progress was slow in the early years, with blending rates stagnating at just 1.5 per cent before 2014 due to reliance on seasonal sugarcane crops. The government has now clarified why E20 fuel, which contains 20 per cent ethanol mixed with petrol, cannot be priced lower than pure petrol. The explanation addresses public expectations that higher ethanol content, often seen as a cheaper alternative, would translate into lower pump prices.
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