Ethanol-Blended Fuel Initiative
The Ministry of Petroleum and Natural Gas (MoPNG) has emphasized the continued focus on ethanol-blended fuel, despite the rising cost of ethanol compared to petrol.
Price and Economic Implications
- There has been a significant increase in the procurement price of ethanol, which is now higher than the cost of refined petrol.
- Benefits of Ethanol Blending:
- Enhances energy security.
- Boosts farmers' incomes.
- Contributes to environmental sustainability.
- Critics argue that the blended fuel should be cheaper, referencing the NITI Aayog report (2020-21), which was prepared when ethanol was still cheaper than petrol.
Future Plans and Considerations
- The transition to E20 (20% ethanol blend) is underway, with further moves beyond E20 requiring extensive consultation and careful consideration.
- The government is committed to maintaining E20 until October 31, 2026, and any extension will involve a detailed decision-making process.
