India’s Ministry of Petroleum and Natural Gas has defended the Ethanol Blended Petrol Programme, saying the policy has helped shield consumers from sharper fuel price increases. According to the government, retail petrol rates could have climbed to around Rs 125 per litre without ethanol blending during periods of global oil market volatility.
The ministry’s response comes amid criticism of the programme over its economic viability and possible food security concerns. In its defence, the government argued that blending ethanol with petrol has reduced the pressure created by expensive crude oil imports and offered meaningful financial relief to motorists.
Officials said the ethanol blending push should be viewed not only as an energy policy but also as a pricing measure that helped contain the impact of international oil swings on Indian consumers. The government’s position suggests that, without the EBP programme, petrol prices would have been significantly higher than what buyers actually paid.
The debate around ethanol blending continues to center on trade-offs between fuel affordability, supply planning and broader resource use. For now, the Petroleum Ministry is presenting the programme as an important buffer against rising fuel costs rather than a driver of higher prices.
