Ethanol kept petrol prices lower: Govt

NEW DELHI: Petrol would have cost around Rs 125 a litre in the national capital when global crude prices touched $135 a barrel had oil companies not blended ethanol into the auto fuel, the petroleum ministry said on Friday, defending the programme against what it described as "misleading" claims about its costs, impact on food security and alleged taxpayer subsidy. It said consumers paid Rs 94.77 per litre because 20% of every litre comprised domestically produced ethanol procured at pre-agreed prices, helping shield retail fuel prices from the global crude price spike. "The result was nearly Rs 30 per litre in savings at the pump during the peak of the crisis," it noted.Govt kept petrol and diesel prices unchanged for nearly 75 days after West Asia conflict began on Feb 28 before raising them by Rs 7.5 per litre in May. The 91-octane standard E20 petrol now costs Rs 102.12 per litre in Delhi, while 100-octane petrol is priced at Rs 169 per litre.The ministry also rejected allegations that foodgrain meant for poor was being diverted for ethanol production or that subsidised FCI rice was being used to support the programme.Get the latest India News and Live updates. Download the TOI app.