The central government in the Lok Sabha on Thursday told that during the West Asian crisis, ethanol kept the fuel prices in check during the West Asia war.
It further said that the testing has also confirmed that E20 is safe for vehicles without abnormal engine damage. In a written reply to an unstarred question, Minister of State for Petroleum and Natural Gas Suresh Gopi sai, "During the West Asian crisis, ethanol at ~₹70/litre kept Delhi petrol at ₹94.77 instead of ₹125, while OMCs absorbed ₹21,300 crore in under-recoveries." Further, on vehicle safety, he said, "Testing confirms E20 is safe across 23+ crore vehicles without abnormal engine damage." He said that the Oil Marketing Companies (OMCs) procure ethanol at ₹71.10–₹71.21 per litre for ESY 2025–26. "Ex-mill prices range from ₹57.97 (C heavy molasses) to ₹71.86 (maize), averaging ₹66.61," he told. The estimated procurement cost per litre of ethanol for the current ESY, running from November 1, 2025 to October 31, 2026, stood at Rs 71.18 for Indian Oil Corporation Limited (IOCL), Rs 71.10 for Hindustan Petroleum Corporation Limited (HPCL) and Rs 71.21 for Bharat Petroleum Corporation Limited (BPCL), inclusive of 5 per cent GST and transportation. The Ethanol Blended Petrol (EBP) Programme has been implemented through a phased, scientifically validated and consultative process involving NITI Aayog, automobile manufacturers, Oil Marketing Companies (OMCs), Automotive Research Association of India (ARAI), Society of Indian Automobile Manufacturers (SIAM), Indian Institute of Petroleum (IIP) and other technical institutions, he said. Recently, the government has also clarified on the insurance claims for the E20 petrol vehicles. Ministry of petroleum and natural gas in a post on social media post on X said, Using E20 petrol cannot be a reason for an insurance claim to be rejected. The Petroleum Ministry said the concerns that E20 fuel could invalidate vehicle insurance policies had been examined and found to be incorrect. According to the ministry, the Ethanol Blending Programme is scientifically validated and is implemented in consultation with oil marketing companies, automobile manufacturers and fuel-testing agencies.
