Why Isn't E20 Petrol Cheaper?

The Central Government has clarified why E20 petrol is not significantly cheaper despite claims that E85 fuel could be available at around ₹20 less per litre. The primary reason is the high production cost of ethanol, which is blended with petrol to produce E20 fuel.

At present, the procurement price of ethanol is ₹71.86 per litre, and additional expenses such as storage, transportation, and GST further increase the overall cost. However, the Centre stated that if global crude oil prices rise sharply from the current $70 per barrel to around $120–130, the cost of pure petrol would increase, making ethanol-blended fuels like E20 comparatively more affordable.