Archive · 30 Jul 2026
Ethanol Blending Shielded Delhi Petrol Prices
The Indian government says that mixing a small amount of ethanol into petrol helped keep gas prices low.
During a big oil price spike in the Middle East, Delhi petrol could have cost about ₹125 per litre, but people only paid ₹94.77.
The government says it bought ethanol cheaply and added it to petrol, which made the fuel cheaper.
They also say this mix helps India use less imported oil and saves money on foreign exchange.
Tests show that older cars still run fine on this blended fuel.
Ethanol blending kept Delhi petrol at ₹94.77/litre versus a potential ₹125/litre during the West Asia crisis.
Public sector oil marketing companies absorbed an estimated ₹21,300 crore under‑recovery on petrol in Feb‑Mar 2026.
Ethanol was procured at about ₹70–₹71 per litre, offsetting rising crude prices.
The programme reduced crude oil import dependence by 317 lakh tonnes and saved ₹1.98 lakh crore in foreign exchange.
Studies and field data show no adverse impact of E20 on legacy vehicles or widespread engine failures.
- Who
- Indian government, Ministry of Road Transport and Highways, Ministers Nitin Gadkari and Suresh Gopi
- What
- Defended ethanol blending programme, claiming it prevented petrol price surge during West Asia crisis
- When
- July 30, 2026, during the peak of the West Asia crisis
- Where
- Delhi, India
- Why
- To shield consumers, reduce crude oil import dependence, and enhance energy security
- Delhi petrol price
- ₹94.77 per litre
- Potential price without ethanol
- ₹125 per litre
- Under‑recovery on petrol (Feb‑Mar 2026)
- ₹21,300 crore
- Ethanol procurement cost
- ₹70–₹71 per litre
- Foreign exchange savings
- ₹1.98 lakh crore
- Crude oil substitution
- 317 lakh tonnes
