Government Acknowledges E20 Costs More to Produce Than Pure Petrol
India's petroleum ministry has clarified that E20 petrol, a blend containing 20% ethanol, costs more to produce than conventional pure petrol. Despite the higher production cost, the government maintains that ethanol blending shields Indian consumers from fluctuating international oil prices. The program has helped India reduce crude oil imports and save considerable foreign exchange reserves. Additionally, the blending initiative supports price stability at the pump and boosts income for farmers who supply ethanol feedstock. The shift to E20 has been carried out gradually through a phased approach involving consultations with key stakeholders.
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