Hardeep Singh Puri says ethanol blending keeps fuel prices low
India's move to mix ethanol into gasoline is helping keep fuel prices low.
Petroleum Minister Hardeep Singh Puri says buying ethanol from farmers at set rates not only steadies fuel costs at home but also means we're less tied to the crazy swings in global oil prices.
Ethanol policy shields consumers, costs ₹75,000cr
Puri points out that this strategy protects people from sudden price jumps caused by global events, like the Middle East conflict that's sent oil prices soaring.
Plus, switching to crops like maize for ethanol (instead of water-hungry sugarcane or rice) has boosted farmer incomes and saved water.
The downside? State-run oil companies are taking a hit, having incurred nearly ₹75,000 crore in Q1 (first quarter) 2026 because fuel price hikes have been delayed despite rising crude costs.