India's E20 ethanol blending program: Why pure petrol and E10 are no longer feasible

India's Ministry of Petroleum and Natural Gas has explained why offering pure petrol or E10 alongside E20 is not practical. The country now runs over 100,000 retail outlets supplied by a complex network of refineries, terminals, and pipelines. Stocking three separate base fuels nationwide would multiply costs and complicate quality control at every outlet. Public sector banks have financed close to Rs 1 lakh crore a year in ethanol plants, storage, and logistics. Reverting to E10 now would strand that investment and hurt the farmers and entrepreneurs who built capacity in good faith. The ministry also addressed why E20 is not cheaper than pure petrol. Maize based ethanol is procured at around Rs 71.86 per litre before GST, transport, and storage costs. When global crude oil prices are around $70 per barrel, producing E20 can cost as much as or more than pure petrol. Ethanol becomes cheaper only when crude prices rise sharply to $120 to $130 per barrel or higher. The program's objective is to reduce India's dependence on imported crude, improve price stability, and strengthen energy security rather than lower pump prices. Since 2014-15, the program has saved over Rs 1.97 lakh crore in foreign exchange, displaced nearly 316 lakh tonnes of crude oil imports, and reduced around 952 lakh tonnes of carbon dioxide emissions.