New Delhi : Doubling down on its E20 petrol policy, the government asserted that it played a key role in protecting Indian consumers when crude prices shot through the roof during the US-Iran war. Coming out with its fourth such clarification on E20 in a week amid outrage among a section of vehicle owners, the government said petrol prices would have climbed to Rs 125 per litre at the peak of the turmoil in the Middle East.
The Petroleum Ministry said global crude prices jumped to $135 (around Rs 13,000) a barrel during the Iran war. Crude prices touched unprecedented levels as Iran, in response to the US-Israeli strikes, blocked the Strait of Hormuz, the waterway through which 20% of the world’s oil and gas passes. “When the Indian crude basket surged to around $135 per barrel, petrol without ethanol blending was projected to cost around Rs 125 per litre in Delhi,” the ministry said.
“Consumers paid Rs 94.77 per litre because 20% of every litre was domestically produced ethanol… the prices were insulated from the global crude price spike,” the government said. The result? Nearly Rs 30 per litre in savings at the pump for consumers during the crisis, the government pointed out. The government’s E20 program – blending 80% petrol and 20% ethanol – has come under severe criticism from opposition parties and consumer groups.
The government has dismissed the claims, stressing that while E20 does reduce mileage, the trade-offs are far greater. Among the biggest benefits, the government said, was a reduction in India’s exposure to volatile global oil prices. At around 85%, India is the second-largest importer of crude oil.
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