Amid the ongoing debate across the country regarding E20 petrol, the central government has strongly defended its ethanol blending policy. The Ministry of Petroleum and Natural Gas says that if we leave E20 petrol and return to E10 petrol, then the investment of about Rs 1 lakh crore in ethanol production and its related infrastructure could be in danger. According to the ministry, for the last several years, public sector banks have financed about Rs 1 lakh crore every year for increasing ethanol production capacity and related projects.
Agreed about reduction in mileage
In recent times, many such claims have surfaced on social media, in which it has been said that E20 petrol reduces the mileage of vehicles and can cause damage to parts like engine, fuel tank and rubber pipes. On these claims, the Ministry said that the use of E20 in some vehicles can reduce the mileage by 3 to 5 percent, but there is no scientific evidence that it causes damage to the engine or other parts of the vehicle.
The ministry said that from time to time such rumors keep spreading that ethanol will jam the engine, damage the rubber pipes or rust the fuel tank. However, such claims have not been confirmed in scientific tests.
The government asked- what will happen to the investment?
The government says that farmers, cooperative societies, private companies, financial institutions and government companies have invested thousands of crores of rupees to increase ethanol production. If E10 is suddenly introduced instead of E20, this entire production capacity may become useless.
The ministry said that before changing any national policy, it is important to see what impact it will have on farmers, industries and investors. Therefore, not only consumer interest, but also energy security, environmental protection, farmers’ income and better utilization of national resources have to be kept in mind.
It is not easy to provide alternative to pure petrol and E20.
Some experts have suggested that customers should have the option to choose the fuel of their choice among pure petrol, E10 and E20. On this the Ministry said that it would be very difficult to implement this system. Separate arrangements will have to be made for supply, storage and distribution of different grades of petrol across the country, which will increase the cost and also complicate the supply chain.
Why is E20 expensive?
The ministry also clarified that the energy efficiency of ethanol is definitely less than petrol, but its production is not cheap. According to the government, if the price of crude oil in the international market remains around $70 per barrel, then producing E20 is costlier than pure petrol. At the same time, if crude oil reaches 120 to 130 dollars per barrel, then ethanol becomes a relatively cheaper option.
The government buys ethanol at fixed prices to provide fair prices to the farmers. In the current supply year, the price of ethanol made from C-molasses has been fixed at Rs 57.97 per liter and the price of ethanol made from maize has been fixed at Rs 71.86 per liter. The government says that the objective of the E20 policy is not only to increase adulteration in petrol, but also to reduce dependence on crude oil imports, increase the income of farmers and promote clean fuel.
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