The Indian government informed Parliament that Oil Marketing Companies (OMCs) are currently paying significantly more to procure ethanol for the E20 blending program than they do for crude oil. Between April 2025 and June 2026, OMCs purchased 705.43 crore litres of ethanol at a total cost of ₹49,577.36 crore, bringing the average procurement price to ₹70.27 per litre. In contrast, with the international crude oil (Indian basket) priced at $74.8 per barrel in July 2026, the equivalent cost to procure raw crude for petrol production stands at just ₹45.31 per litre.
Key Highlights
- Ethanol Procurement Cost: ₹70.27 per litre
- Crude Oil Procurement Cost: ₹45.31 per litre (based on $74.8/barrel in July 2026)
- Total Ethanol Procured: 705.43 crore litres (April 2025 – June 2026)
- Total Expenditure on Ethanol: ₹49,577.36 crore
By
