E20 costlier to produce than pure petrol: Government

NEW DELHI: The Ministry of Petroleum and Natural Gas announced on Friday that producing E20 petrol, a blend of 20% ethanol and 80% petrol, is currently more expensive than manufacturing pure petrol. This revelation comes amid the government's push towards cleaner and more sustainable fuel alternatives to reduce carbon emissions and dependency on fossil fuels. Despite the higher production costs, the government remains committed to its target of achieving a 20% ethanol blend nationwide by 2025. The increased production cost of E20 petrol is attributed to several factors, including the procurement and processing of ethanol, which involves agricultural inputs and additional refining steps. Ethanol production is largely dependent on the availability and price of feedstocks like sugarcane and corn, which can fluctuate based on agricultural conditions and market dynamics. Consequently, these variables contribute to the overall cost disparity between E20 and conventional petrol. Despite the financial challenges, the government believes that the long-term benefits of E20 petrol, such as reduced emissions and enhanced energy security, outweigh the current cost concerns. Efforts are underway to streamline ethanol production and distribution processes to make E20 more economically viable. As part of this strategy, the government is encouraging investment in ethanol production infrastructure and exploring incentives for stakeholders to foster a more sustainable and cost-effective fuel ecosystem.

— Authored by Next24 Live