OilMin rejects blended fuel fears, says ethanol priced higher than petrol

Despite higher ethanol prices, India sticks to its blending mandate for energy security, farmer income, and sustainability

The Ministry of Petroleum and Natural Gas (MoPNG) on Tuesday said oil-marketing companies are continuing to focus on ethanol-blended fuel despite ethanol prices being higher than petrol.

 

The ministry was responding to concerns that ethanol-blended petrol might result in reduced mileage, vehicle life, and increased cost. 

“Over time, the procurement price of ethanol has increased and now the weighted average price of ethanol is higher than the cost of refined petrol,” the ministry said in a statement.

 

“Despite the increase in price of ethanol in comparison to petrol, the oil companies have not gone back on the ethanol blending mandate