Government says ethanol blending kept petrol prices from skyrocketing
The government says ethanol blending helped keep gasoline prices from skyrocketing, even as the Indian crude basket climbed to nearly $135 per barrel during the West Asia crisis on August 6, 2026.
Minister of State for Petroleum and Natural Gas Suresh Gopi explained that without this move, gasoline could have risen to around ₹125 per liter; retail petrol in Delhi was priced at ₹94.77 per liter, partly because oil marketing companies (OMCs) were able to procure ethanol at around ₹70 per liter for blending with petrol.
Ethanol cut imports OMCs lost ₹11/litre
Ethanol blending didn't just save you money at the pump; it also cut India's need for imported oil and helped protect the economy from wild price swings and currency shocks.
The government points out extra perks too: lower emissions, foreign exchange savings, and better incomes for farmers.
Even so, oil companies did face losses of ₹11 per liter between March and June 2026.