New Delhi, July 10 -- The Ministry of Petroleum and Natural Gas has said that E20 petrol is currently costlier to produce than pure petrol at prevailing global crude oil prices, but the ethanol blending programme is helping shield Indian consumers from global oil price volatility while strengthening the country's long-term energy security.

In a detailed clarification issued through a set of frequently asked questions on the Ethanol Blended Petrol Programme, the ministry said the economics of ethanol depend on international crude oil prices. It noted that maize-based ethanol is currently procured at around Rs 71.86 per litre, even before GST, transportation, storage and depot handling costs.

"Therefore, if international crude oil is trad...