10% Ethanol Blending With Petrol Can Lower Fuel Price By ₹3/litre: Experts


10% Ethanol Blending With Petrol Can Lower Fuel Price By ₹3/litre: Experts

Petrol prices can come down by ₹2.60-2.90 a litre if even 10 per cent ethanol blending with fuel is achieved, say industry experts.

Under the Ethanol Blending Programme, the Centre has asked oil marketing companies (OMCs) to target 10 per cent blending of ethanol with petrol by 2022. According to data compiled by the Indian Sugar Manufacturers Association (ISMA), the nationwide average for ethanol blending stands at 4.02 per cent as on October 1.

“Blending ethanol with fuel raises the octane number of petrol. Petrol prices can be lowered if OMCs pass on the gains,” Amit Sachdev, South Asia (India, Bangladesh, and Sri Lanka) Representative for the US Grains Council (USGC), said. Petrol is a product of fractional distillation of crude oil, with further treatment, including addition of multi-function additives, to enhance its octane rating and other properties. A higher octane number means engines can burn the same amount of petrol to extract more energy. Read more

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