Petrol Would Have Touched ₹125/Litre During Iran War Without E20 Blending, Government Claims

The Centre says petrol could have touched ₹125 per litre during the Iran conflict without 20% ethanol blending, defending its E20 policy amid criticism over mileage and vehicle compatibility.

Post Published By: Sreeja Chowdhury

Updated : 1 August 2026, 4:09 PM IST

Petrol Price Could Have Hit ₹125/Litre Without Ethanol Blending: Centre (Img: Pinterest)

New Delhi: The Union government has come out in support of its E20 ethanol-blended fuel policy, arguing that it helped Indian consumers cope with the sudden rise in fuel prices when the recent conflict in Iran took place. The Petroleum Ministry stated that petrol in Delhi could have been priced at around ₹125 per litre in the midst of the international crude oil price rise without the E20 policy in place.

This statement came after an increasing number of criticisms regarding the effects of the use of E20 fuel in terms of fuel efficiency and performance of engines.

E20 Policy Ensured Containment of Fuel Prices

As per the ministry, the international crude oil prices had increased to almost $135 per barrel due to the conflict in the Western part of Asia due to problems connected to the Strait of Hormuz, a major international oil trading route.

However, consumers in Delhi paid around ₹94.77 per litre as 20% of each litre of petrol was made up of domestic ethanol rather than crude oil.

The government argued that consumers saved about ₹30 per litre through this policy.

Centre Labels Ethanol as ‘Energy Insurance’

In light of criticism, the government termed ethanol blending as "India’s energy insurance" because it helped lower the exposure of the nation to international oil prices since the country is almost dependent on international oil supplies for 85% of its oil demand.

Though there were concerns about reduced fuel efficiency with E20, the ministry was clear in pointing out that the advantages far outweigh the disadvantages.

No Diversion of Subsidised Foodgrains, Says Ministry

The Petroleum Ministry also rejected allegations that subsidised foodgrains meant for public distribution were being diverted for ethanol production.

It clarified that ethanol is produced only from surplus or damaged foodgrains, including broken rice unfit for human consumption, and not from food allocated to welfare schemes.

The government said the ethanol programme supports farmers, reduces import dependence and strengthens India's energy security without compromising food availability.