Ethanol blending won't lower fuel rates: Ex-HPCL chief busts ‘myth’

The E20 petrol debate has ignited conversations across sectors. At this time, Surana dismissed the "myth" that ethanol blending should lower fuel prices.

Updated on: Jul 18, 2026, 16:44:50 IST

Edited by HT News Desk

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The rollout and adoption of E20 fuel, petrol blended with 20 per cent ethanol, has ignited a widespread debate across India, drawing reactions from several prominent figures.

The debate has gained widespread traction. (AP Photo)

MK Surana, former Chairman and Managing Director of Hindustan Petroleum Corporation Limited (HPCL), has reportedly clarified about the pricing of ethanol-blended fuel.

According to a report by CNBC TV18, Surana during a panel discussion dismissed the "myth" that ethanol blending would lower fuel prices.

Also Read | E20 fuel case: Court orders Maruti to replace customer's SUV, carmaker to contest move

He emphasised that while the price of ethanol ranges between ₹56.71 and approximately ₹71 per litre, the ex-refinery price of petrol stands at around ₹53 per litre.

“As far as the oil marketing companies are concerned, the answer is no, because ethanol is costlier than petrol for them,” the CNBC TV18 report quoted him as saying.

However, Surana noted that ethanol does provide price stability during spiking global crude oil prices.

Also Read | Mercedes-Benz India issues E20 advisory after Sourav Joshi's mileage drop claims

Kejriwal writes to PM Modi

The debate has also gained political traction. Earlier, AAP chief Arvind Kejriwal sought an appointment with Prime Minister Narendra Modi to discuss concerns over E20 petrol.

In his letter, the AAP leader said there was "a huge public outcry" over the use of E20 petrol in vehicles that are not compliant with the fuel standard, according to news agency PTI.

The AAP supremo also said the party had started an online petition for citizens to share their experiences with E20 petrol.

Notably, Kejriwal said his two key demands were that petrol stations should provide both pure petrol and E20 fuel options so that vehicle owners could make a choice, and that the price of the blended fuel should be reduced.

Also Read | Don’t want E20, go for pure petrol, says Gadkari: What drivers in India can actually buy at the pump

Govt on pricing

In a press release of the Ministry of Petroleum and Natural Gas, dated July 10, it was noted that E20 is not necessarily cheaper than conventional petrol because ethanol procurement prices are fixed at remunerative levels to support farmers. It emphasised that the objective was to reduce India's dependence on imported crude.

"Ethanol blending is therefore not about making petrol cheaper on a particular day. It is about reducing India's exposure to imported crude oil," the release said.

(with inputs from agencies)

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