A recent RTI response from Indian Oil Corporation (IOC) has confirmed that petrol sold in Kolkata, including both standard Motor Spirit and premium XP95, contains 20% ethanol by volume. The clarification came through a reply dated July 3, 2025, following a query filed on June 7. This development aligns with the nationwide rollout of E20 petrol, which has seen ethanol blending rise nearly thirteenfold over the past 11 years.
While the government promotes E20 as a move towards energy independence and reduced crude oil imports, concerns from the public are mounting. Vehicle owners, especially those with older models, are reporting worries about potential engine damage and declining performance. Many consumers are also questioning why fuel prices haven’t dropped, given that ethanol is cheaper to produce. For instance, E20 production costs around ₹61 per litre (including GST), while pure petrol costs about ₹95 in Delhi. Yet, due to existing tax structures like excise, VAT, and subsidies, retail prices often remain unchanged. Despite NITI Aayog recommending tax incentives and price reductions for ethanol-blended fuels in 2021, these suggestions have yet to be implemented.
