In Gujarat, petrol stations now offer a blend of 80% petrol and 20% ethanol. This change is part of a government initiative that started in 2014. The aim is to support local farmers and reduce reliance on foreign oil. However, consumers continue to pay full petrol prices. Currently, petrol costs ₹94.25 per litre despite the ethanol blend. Ethanol is a type of alcohol made from sugarcane or starchy crops. The blending started at just 1.53% and has gradually increased to 20%. While this blend supports sugarcane farmers, it has not brought down petrol prices for consumers. This raises questions about the benefits of ethanol for vehicle owners.
Blending ethanol with petrol does have some concerns. For instance, during the monsoon season, ethanol can attract moisture. This leads to engine starting problems, especially for two-wheeler users. To warn customers, some petrol stations have put up notice boards. One such notice at an HP petrol pump in Rajkot advises customers to take extra care during rainy weather. Many petrol stations across Gujarat have similar warnings to prevent complaints about fuel quality.
The government hopes that increasing ethanol blending will reduce crude oil imports and lower emissions. Studies have shown that 1 crore litres of ethanol-blended petrol can save around 20,000 tons of CO2 emissions. Farmers have reportedly earned ₹87,558 crore due to the increased demand for sugarcane and grains. However, the ethanol blending programme has not been without its challenges. It raises concerns about food security and inflation, particularly regarding sugar and maize prices.
Despite the benefits, consumers have not seen any reduction in petrol prices. Ethanol costs less than petrol, yet the savings have not been passed on to consumers. The price of petrol is primarily influenced by international crude oil prices and taxes imposed by the government. These taxes account for about 50% of the petrol price, while ethanol is taxed at a much lower rate of 5% GST. Experts believe that blending ethanol could potentially lower petrol prices by ₹3 to ₹8 per litre. Yet, these price reductions have not been realised at the pump.
Moreover, ethanol burns faster than petrol, which can impact fuel efficiency. This means consumers may need to buy more blended petrol to travel the same distance. Vehicles designed for E10 fuel may struggle with E20 blends, leading to lower mileage and possible engine issues.
In conclusion, while the ethanol blending programme aims to support farmers and reduce emissions, consumers in Gujarat have yet to see the benefits in their fuel costs. The government must address these pricing issues to make the ethanol initiative beneficial for all.