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Hindu editorial flags E20 costs when crude falls below $70
The Hindu··13 Jul
A The Hindu editorial said the government's E20 ethanol blending programme can raise consumer fuel costs when international crude oil falls below about 70 dollars a barrel. It argued that motorists still pay more at the pump for lower-mileage blended fuel even as global oil softens, citing impacts across major consuming states including Karnataka state.
Prism
What It Means For You
- Drivers may keep paying more for E20 when crude prices fall.
- Sugarcane-heavy blending raises water and fertilizer concerns.
- Policy shifts toward residue ethanol could change pump economics.
What's Happening
- The Hindu editorial criticised E20 pricing linked to farmer support.
- It noted E20 can cost more than pure petrol below $70 crude.
- Sugarcane remains the dominant ethanol feedstock cited.
Blending Debate
- India has expanded maize and grain-based distillation capacity.
- 2G ethanol from residues avoids using cropland for fuel.
- Public backlash over mileage and pricing has grown recently.
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