Why Isn’t E20 Petrol Cheaper Than Pure Petrol?
E20 fuel has not been introduced as a cheaper version of pure petrol, according to the Government. Its biggest advantage is that nearly one-fifth of every litre of fuel sold in India now comes from domestically produced ethanol. This helps reduce the country’s reliance on imported crude oil. The government procures ethanol at a fixed price to ensure farmers receive fair returns, and it also involves transportation, storage and blending costs; it is not as inexpensive as many people assume. As a result, when global crude oil prices are relatively low, E20 may cost almost the same as regular petrol. The government states that the real benefit of ethanol-mandated fuel lies in improving India’s energy security, as well as protecting the country from global oil price fluctuations and geopolitical disruptions, while also supporting the domestic agricultural sector.