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Commodity Market, Commodities News Today | The HinduBusinessLine

India could limit sulphur exports as supplies tighten, sources say India turns to US, Oman, Nigeria for LNG imports in March as Qatar, UAE supplies dry up China resumes buying broken rice from India Silver Price Today April 16: Latest rates in Delhi, Mumbai, Kolkata, Chennai & Bengaluru Gold rate today April 16: Gold rates up in Mumbai, Delhi, Chennai, Kolkata, Ahmedabad & Bengaluru Indian LNG importers scoop up spot shipments after prices recede Limelight Lab Grown Diamonds targets tier 2-cities with 25 stores in Q1 Crude oil futures edge up despite hopes of US-Iran ceasefire extension ‘Iran war oil shock as disruptive as Covid’ Iran war brings US close to net crude exporter for first time since World War II NAAS suggests govt to consider one-time licensing for imported horticulture hybrids India targets cocoa self-sufficiency by 2040 with national mission and reforms Why is Gold rate surges past $4,850 & Silver crossing $80? Crude unlikely to return to pre-war levels soon; India's import bill may rise $70 billion annually: Report US shuts down Iran’s maritime trade despite optimism for more talks Brent crude edges up ahead of fresh US-Iran talks Global fertilizer supply crunch tightens farm economics Crude oil prices fall for a second day on expectations US-Iran talks may resume Madhya Pradesh CM says basmati rice from the State is exported to 47 nations Russian crude oil imports rebound in March as PSU refiners lift record volumes Oil prices hit record high in March as refiners try to replace West Asian grades: IEA India’s gems and jewellery exports plunge 35% in March on weak demand Inflows into gold ETFs turn positive in past fortnight India’s Russian oil imports surge to €5.3 billion in March on higher volumes Russia restricts helium exports as global supply tightens amid Middle East tensions India’s oil security under pressure as West Asia crisis exposes import dependence risks Fuel price freeze: ₹18/litre loss on petrol, ₹35 on diesel Iran oil hoard at sea shields China’s refiners from US blockade Oil declines as US, Iran weigh more talks; US blockade of shipping to and from Iranian ports in place IMD forecast of below-normal Indian monsoon poses risk to agriculture, economy
Centre defends E20 petrol amid viral claims, pushes ethan...
Amit Vijay Mohile · 2026-06-24 · via Commodity Market, Commodities News Today | The HinduBusinessLine

The Ministry of Petroleum and Natural Gas on Tuesday issued an unusually combative defence of E20 petrol, accusing some social media users of recycling old videos and images to “garner viewership through sensationalism” and create “unwarranted concerns regarding ethanol-blended fuel”, even as the government begins laying the groundwork for an eventual E100 ecosystem.

Calling the claims “misleading and unsubstantiated”, the ministry said the Ethanol Blending Programme is “scientifically validated and continuously monitored by the Government” and that no widespread engine failures or vehicle breakdowns linked to ethanol blending have been reported since the introduction of E20 petrol.

The statement marks one of the government’s strongest public interventions yet to counter criticism of the ethanol programme and comes at a pivotal moment for India’s biofuel ambitions. Having achieved its 20% ethanol blending target ahead of schedule, policymakers are now shifting their attention to the next phase of the transition—one that will depend not only on production capacity and blending mandates but also on whether consumers are willing to embrace ethanol-rich fuels.

Why the Government Stepped In

The ministry’s statement directly addressed a series of claims that have gained traction on social media in recent weeks, including allegations that ethanol-blended petrol can damage engines, attract insects, absorb water, compromise fuel quality or even affect vehicle insurance validity.

In a sign of the government’s growing frustration, the statement suggested some of the content was being amplified for attention rather than public awareness.

“It has also been observed that old images and videos are being recirculated in an apparent attempt to garner viewership through sensationalism and create unwarranted concerns regarding ethanol-blended fuel,” the ministry said.

The release went further, alleging that “certain individuals are creating and sharing videos on social media falsely portraying sugarcane juice as being mixed directly with petrol.”

“Such content is misleading and baseless,” it said.

The unusually direct language reflects how seriously policymakers appear to be taking the issue. Fuel policy communications typically focus on economics, energy security and environmental benefits. This time, the government chose to confront social media narratives head-on.

Defending Ethanol, Not Just E20

At one level, the statement is a defence of E20 fuel, which is already being sold nationwide. But the timing suggests a broader concern.

India has already crossed the milestone that policymakers have pursued for nearly two decades. According to the ministry, the ethanol blending programme has helped save the country more than ₹1.4 lakh crore in foreign exchange by reducing crude oil imports, while creating sustained demand for agricultural feedstocks and strengthening farmers’ incomes.

The bigger challenge now lies ahead.

The government’s intervention comes shortly after policymakers began outlining a roadmap for E100 and discussing a future built around higher ethanol usage and flex-fuel vehicles. That changes the nature of the ethanol transition.

Unlike E20, where consumers effectively receive blended fuel by default, the next phase will increasingly require motorists to actively choose ethanol-based fuels. Flex-fuel vehicles can operate on both petrol and ethanol, meaning adoption will depend not only on availability and pricing but also on public confidence in ethanol itself.

Viewed through that lens, the ministry’s intervention appears less like a routine fact-check and more like an effort to protect ethanol’s credibility as India prepares for the next stage of its biofuel strategy.

The Science Defence

Throughout the statement, the ministry repeatedly returned to the theme of scientific validation. “The Ethanol Blending Programme is scientifically validated and continuously monitored by the Government,” it said, adding that higher blending levels have been introduced only after extensive technical evaluation and consultation with oil marketing companies, automobile manufacturers, fuel testing agencies and other stakeholders.

The ministry also sought to reassure consumers that ethanol-blended fuel has not triggered systemic vehicle problems.

“Since the introduction of E20 petrol, no widespread issues of engine failure or vehicle breakdown attributable to ethanol blending have been reported,” it said.

Addressing concerns about ethanol’s tendency to absorb moisture, the ministry noted that water contamination is undesirable for any fuel system and not unique to ethanol blends.

“It is common knowledge that the entry of water into the fuel tank is undesirable for any fuel, whether ethanol blended or otherwise,” the statement said, adding that modern vehicles are equipped with safeguards to prevent water ingress.

The Ants, Sugarcane Juice and Insurance Claims

A significant portion of the statement focused on debunking specific claims that have circulated online.

One of the most widely shared videos showed ants near a vehicle fuel tank, prompting suggestions that ethanol was attracting insects because it is derived from sugar-rich feedstocks.

Citing Bharat Petroleum Corporation Ltd (BPCL), the ministry said fuel-grade ethanol undergoes fermentation and distillation processes that eliminate residual sugars and contain denaturants that are repellent to insects.

“There is no identifiable attractant associated with E20 fuel that would cause ants or other insects to congregate around vehicle fuel caps,” the statement said.

It concluded that claims linking E20 fuel to ant attraction have “no scientific basis and are not supported by scientific evidence.”

The ministry also rejected videos allegedly showing sugarcane juice being mixed directly with petrol.

While ethanol can be produced from sugarcane juice, molasses, broken rice and maize, it stressed that fuel ethanol is produced through established industrial processes and must conform to stringent quality specifications before blending.

Similarly, it dismissed claims that using E20 fuel could affect vehicle insurance validity, noting that relevant stakeholders had clarified the matter and found them incorrect.

Why Perception Matters Now

The government’s unusually aggressive response reflects a reality confronting the next stage of India’s ethanol ambitions.

The first phase of the programme was primarily a supply challenge. Policymakers needed to expand ethanol production, create procurement systems and ensure oil companies could blend increasing volumes of ethanol into petrol.

The next phase is likely to be a demand challenge.

Unlike electric vehicles, which create captive electricity demand once purchased, ethanol-based mobility does not automatically create captive ethanol demand. Even in a future E100 ecosystem, motorists will continue to compare ethanol against petrol on cost, convenience and perceived reliability. That makes consumer trust a critical variable.

Any sustained doubts about engine durability, fuel quality or vehicle performance could slow adoption irrespective of government targets or production capacity.

The Brazil Reference

The ministry’s statement also pointed to international examples, including the United States, Brazil and Japan, where ethanol blending has been implemented successfully for years. Brazil occupies a particularly important place in India’s ethanol strategy and is frequently cited by policymakers as evidence that higher ethanol blends are technically feasible.

The ministry noted that Brazil has long operated with E27 as its standard petrol blend. Yet Brazil also offers another lesson. Its ethanol ecosystem works not only because consumers trust the fuel but because ethanol is often priced attractively relative to gasoline.

That distinction may become increasingly important as India seeks to move beyond blending targets towards wider adoption of ethanol-rich fuels such as E-100.

Published on June 24, 2026