India is among the countries offering some of the cheapest petrol prices globally, with ethanol blending playing a key role in reducing the impact of volatile international crude oil prices, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Friday.
Puri said India’s ethanol programme has helped reduce dependence on imported crude oil by integrating domestically produced ethanol into petrol supplies.
He added that while global crude prices have fluctuated sharply in recent months, ethanol purchased from farmers remains available at a fixed price throughout the year.
“When the world is troubled by rising crude oil prices, India has ethanol purchased from its farmers, whose price remains fixed for the entire year,” Puri said in a post on X.
The minister said ethanol blending has reduced India’s exposure to fluctuations in Brent crude prices, which have moved between $68 and $128 per barrel in recent months.
He added that the use of ethanol provides a buffer against global energy market disruptions.
The government also highlighted a shift in ethanol production towards crops requiring less water.
Puri said India has moved from high-water crops such as sugarcane and rice towards maize-based ethanol production, helping improve farmer incomes while conserving water resources. Maize now contributes nearly 35% of ethanol production, he said.
The Petroleum Ministry said India’s ethanol blending programme has helped limit the increase in domestic fuel prices compared with other major economies.
It clarified that the objective of ethanol blending is not to make petrol cheaper but to reduce dependence on imported crude and strengthen energy security.
Addressing concerns over why E20 petrol is not priced lower than conventional petrol, the ministry said ethanol procurement includes remunerative pricing for farmers.
It currently purchases maize-based ethanol at around ₹71.86 per litre, excluding additional costs such as GST, transportation, storage and handling.
The ministry explained that when crude oil prices remain around $70 per barrel, producing E20 fuel may cost more than pure petrol. However, if global crude prices rise significantly to $120-130 per barrel, ethanol becomes comparatively more economical.
Nearly 20% of every litre of petrol sold in India now contains domestically produced ethanol, whose price remains unaffected by daily crude fluctuations, geopolitical tensions or shipping disruptions.
The government said the blending programme has helped India record one of the lowest increases in retail fuel prices among major economies during a period of global energy uncertainty.
