Petrol and diesel prices unchanged as India reports 3-fold surge number of in pumps selling biofuel

Global crude prices are still reeling from uncertainty about supply of oil amid Russia’s war on Ukraine and OPEC’s production cuts. But petrol and diesel rates in India remain unchanged, as oil companies are struggling to pare losses caused by a price freeze earlier this year. The situation may change eventually when cheaper petrol with 20 per cent ethanol enters the Indian market early next year, lowering costs by Rs 10 per litre.

Mumbai’s motorists will continue to pay Rs 106.31 per litre for petrol and Rs 94.27 a litre for diesel.

Kolkata will get petrol for Rs 106.03 for a litre, while diesel comes for Rs 92.76 per litre.

Prices in Chennai are Rs 102.63 a litre for petrol, and Rs 94.24 per litre for diesel.

Delhiites will get petrol for Rs 96.72 a litre and diesel will be available at Rs 89.62, even as air quality deteriorates.

Ethanol-mixed petrol to the rescue

Speaking of environmental concerns, petrol blended with ethanol will not just reduce emissions, but can also help India cut dependence on imports. The number of petrol pumps selling biofuel in India has already tripled in five years, and Honda is also launching its first flex-fuel bikes that use blended petrol, in India. The local sourcing of ethanol will also allow farmers to generate extra income in the country.

More than just price benefits

Ethanol is derived from stubble and rice straw, which are left as waste products from agriculture, and are often burnt. In 2020, researchers at Indian Institute of Science produced 36 litres of ethanol by recycling 100 kilogram of paddy straw. This practice will also help farmers dispose of stubble without burning it, a process that causes air pollution across Indian cities including Delhi.

More flex-fuel engine vehicles are also expected to find a market in India once petrol with a higher concentration of ethanol flows into Indian markets.