E20 fuel debate intensifies: Former HPCL chief says ethanol blend won’t cut petrol prices
Former HPCL CMD MK Surana says ethanol blending offers an important economic advantage by helping cushion fuel prices when international crude oil markets experience sharp volatility, thereby improving price stability
The nationwide rollout of E20 fuel—petrol blended with 20% ethanol—has triggered an intense debate, with industry experts and political leaders expressing differing views on its pricing and impact.
Former Hindustan Petroleum Corporation Limited (HPCL) Chairman and Managing Director MK Surana has addressed concerns surrounding the cost of ethanol-blended petrol, clarifying that consumers should not expect the fuel to be cheaper, according to a CNBC-TV18 report.
Surana, speaking during a panel discussion, rejected the widespread perception that higher ethanol blending would automatically reduce petrol prices. He pointed out that ethanol currently costs between ₹56.71 and nearly ₹71 per litre, while the ex-refinery price of petrol is about ₹53 per litre.
“As far as the oil marketing companies are concerned, the answer is no, because ethanol is costlier than petrol for them,” he said.
Even so, Surana stressed that ethanol blending offers an important economic advantage by helping cushion fuel prices when international crude oil markets experience sharp volatility, thereby improving price stability.
The issue has also entered the political arena. Earlier, Aam Aadmi Party (AAP) national convenor Arvind Kejriwal sought a meeting with Prime Minister Narendra Modi to raise concerns over the nationwide implementation of E20 petrol.
In a letter cited by news agency PTI, Kejriwal said there was "a huge public outcry" over the use of E20 fuel in vehicles that are not designed to run on the blended petrol. He added that the AAP had launched an online petition inviting citizens to share their experiences with E20 fuel.
Kejriwal also put forward two key demands: petrol pumps should continue offering both conventional petrol and E20 fuel, allowing consumers to choose based on vehicle compatibility, and the price of ethanol-blended petrol should be lower than regular petrol.
Meanwhile, the Ministry of Petroleum and Natural Gas, in astatementissued on July 10, clarified that E20 petrol is not inherently cheaper than conventional fuel. The ministry explained that ethanol procurement prices are deliberately kept at remunerative levels to support farmers, while the broader objective of the ethanol-blending programme is to reduce India's dependence on imported crude oil rather than lower retail fuel prices.
"Ethanol blending is therefore not about making petrol cheaper on a particular day. It is about reducing India's exposure to imported crude oil," the statement said.
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