Centre defends E20 fuel, acknowledges 3-5% reduction in fuel economy for some vehicles
The Ministry of Petroleum and Natural Gas defended E20-blended fuel, admitting a 3-5% reduction in fuel economy for "some vehicles" but highlighting other benefits like higher octane rating, superior anti-knock characteristics, and cleaner engine operation. The government explained that E20 is not currently cheaper than pure petrol because ethanol is procured at remunerative prices to compensate farmers, making it costlier when crude oil prices are around $70 a barrel. However, E20 becomes cheaper when crude oil prices reach $120-130 per barrel, and it helps insulate the Indian market from global price volatility.
Key Points
- The government acknowledges a potential 3-5% reduction in fuel economy with E20 fuel for certain vehicles.
- E20 offers benefits such as higher octane rating, better anti-knock properties, and cleaner engine operation.
- The current cost of E20 is influenced by remunerative prices paid to farmers for ethanol, making it costlier than pure petrol at lower crude oil prices.
- E20 blending helps reduce lifecycle carbon emissions by about 40% and insulates India from global oil price volatility.
Exam Facts
- E20 refers to fuel with 20% ethanol blend.
- Ministry of Petroleum and Natural Gas issued the FAQ document.
- Ethanol procurement price is around ₹71.86 per litre (before GST, transport, storage).
- E20 becomes costlier than pure petrol when crude oil is around $70 per barrel, but cheaper at $120-130 per barrel.
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