The Ministry said ethanol blending has strengthened India’s energy security by reducing dependence on imported crude oil while ensuring that more fuel-related spending stays within the country.
Published: July 31, 2026, 3:00 PM IST
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Govt credits ethanol blending for keeping petrol prices below Rs 95 during global oil shock (Image: special arrangement)
The Govt said ethanol blending kept petrol prices at Rs 94.77 per litre in Delhi during the recent West Asia crisis, instead of a projected Rs 125 per litre, helping consumers save around Rs 30 per litreThe Ministry of Petroleum and Natural Gas said that when the Indian crude oil basket touched around USD 135 per barrel during the recent West Asia crisis, petrol prices in Delhi could have risen to nearly Rs 125 per litre if ethanol had not been blended with petrol.
Instead, consumers continued to pay Rs 94.77 per litre because 20 per cent of every litre of petrol consisted of domestically produced ethanol, which was purchased at stable, pre-fixed prices.
According to the ministry, this helped reduce the impact of the sharp rise in global crude oil pricesIt added that ethanol blending has strengthened India’s energy security by reducing dependence on imported crude oil while ensuring that more fuel-related spending stays within the country.
The government also said the Ethanol Blended Petrol (EBP) Programme is designed to balance food security, farmer welfare and energy needs.
It clarified that only surplus foodgrain, certified by the Department of Food and Public Distribution after meeting all food security requirements, is used for ethanol production.
The ministry stressed that grain meant for the Public Distribution System (PDS), the National Food Security Act, welfare schemes and mandatory buffer stocks is not diverted for ethanol production until all food security needs have been fulfilled.
It further said that the programme also uses damaged grain, broken rice and foodgrain unfit for human consumption, ensuring that edible grain meant for public consumption is not affected.
The ministry said EBP Programme has helped India save more than Rs 1.97 lakh crore in foreign exchange by reducing crude oil importsIt also claimed the initiative has prevented the release of over 950 lakh metric tonnes of carbon dioxide, contributing to lower carbon emissions.
According to the ministry, the programme has also benefited farmers and ethanol producers, with payments exceeding Rs 1.66 lakh crore made to farmers and distillersIt said this has created a reliable domestic market for agricultural produce while boosting rural incomes.
The ministry added that ethanol blending plays a key role in reducing India’s dependence on imported crude oil, which still meets nearly 88 per cent of the country’s oil demandIt said the programme also acts as a safeguard against sudden spikes in global crude oil prices, helping protect consumers from sharp increases in fuel costs.
(With IANS inputs)
