New Delhi: Amid rising protests and outrage over the introduction of ethanol in petrol, the Central government strongly defended its E20 petrol policy, dismissing allegations over foodgrain diversion and subsidies as “misleading” and asserting that ethanol blending protected Indian consumers from a sharp spike in fuel prices during the Iran conflict.
Issuing a fourth clarification on E20 in the last 10 days, the government claimed that petrol prices would have climbed to Rs 125 per litre at the peak of the US-Iran war in the Middle East had the ethanol blended petrol (EBP) programme been implemented.
The Petroleum ministry said in a detailed statement that global crude prices jumped to $135 (around Rs 13,000) a barrel during the Iran war as Tehran blocked the Strait of Hormuz — the crucial waterway through which 20% of the world’s oil and gas passes – in retaliation to the US-Israeli strikes.
“When the Indian crude basket surged to around $135 per barrel, petrol without ethanol blending was projected to cost around Rs 125 per litre in Delhi,” the ministry said.
“(Yet) Consumers paid Rs 94.77 per litre (in Delhi) because 20% of every litre was domestically produced ethanol… the prices were insulated from the global crude price spike,” the government said, referring to the price in early May.
There was a hike of nearly Rs 8 per litre over four phases between May 15 and 25 – after fuel price remained unchanged for nearly three months since the conflict erupted on February 28.
The result was nearly Rs 30 per litre in savings at the pump for consumers during the crisis, the government pointed out.
Petrol prices vary in different cities in India due to State Value Added Tax (VAT), transportation costs, and dealer commissions.
The current price in Bhubaneswar is Rs. 108.85 per litre, in Delhi Rs 102.12 per litre, in Mumbai Rs 111.21 per litre, in Kolkata Rs 113.51 per litre and in Chennai Rs 107.77 per litre.
