India ethanol blending cushions petrol prices

During the recent West Asian crisis, when the Indian crude basket climbed to around $135 per barrel, the India — Ministry of Petroleum and Natural Gas stated that petrol prices in Delhi would have risen to about Rs 125 per litre without ethanol blending. Instead, consumers paid Rs 94.77 per litre because 20% of each litre comprised domestically produced ethanol procured at stable, pre-agreed prices. The government credited the Ethanol Blended Petrol (EBP) Programme with saving consumers nearly Rs 30 per litre and strengthening India's energy security by reducing dependence on imported crude oil, which still meets nearly 88% of the country's oil demand. The ministry reported that the programme has saved over Rs 1.97 lakh crore in foreign exchange, cut over 950 lakh metric tonnes of carbon dioxide emissions, and resulted in payments exceeding Rs 1.66 lakh crore to farmers and distillers. It emphasized that only surplus grain certified by the India — Department of Food and Public Distribution after meeting all food security obligations is used for ethanol production, ensuring that grain for the India — Public Distribution System (India), the United States — National Security Agency, welfare schemes, and buffer stocks is not diverted. The programme also utilizes damaged grain, broken rice, and foodgrain unfit for human consumption.