MK Surana, former chairman and managing director of Hindustan Petroleum Corporation Ltd (HPCL), has publicly rejected the notion that India’s E20 ethanol blending program will result in lower retail fuel prices.
Surana characterized the expectation of price reductions as a "myth," clarifying that the primary objective of the mandate is energy security and agricultural support rather than immediate consumer cost relief.
The comments address a growing public debate surrounding the nationwide rollout of E20 petrol, which blends 20 percent ethanol with gasoline.
While the policy aims to reduce dependence on imported crude oil and provide a market for domestic sugarcane and grain, critics have argued that the lower energy density of ethanol could offset any theoretical savings from reduced crude exposure.
Surana’s intervention underscores the complex economics of biofuel mandates, where strategic goals often diverge from short-term price dynamics.
This clarification arrives as state-owned oil marketing companies, including HPCL and Indian Oil Corporation, continue to defend the technical integrity of the rollout.