
Avinash Singh
1.3K posts












#WATCH | Delhi: On ethanol, Vikram Gulati, Country Head and Executive Vice President (Corporate Affairs and Governance) of Toyota Kirloskar Motor, says, "...I think there is a lot of misunderstanding about the fuel. For example, if you look at it from the automotive sector, there is a lot of myth that if you use E20 blended fuel, vehicles will get damaged. It's a myth. It doesn't happen this way. There's a lot of myth about the amount of mileage loss or the fuel efficiency loss. Yes, there is some fuel efficiency loss, no doubt. But it is not so big as it is being made out to be...E85 and E100, that is, 85% ethanol and 100 % ethanol, are not meant for regular cars. It is meant for a different type of technology, which is called a flex fuel vehicle. This vehicle can take any mix of ethanol. So people need not worry. E20 is the standard fuel that will be available, and it is compatible with old vehicles and new vehicles. All vehicles sold after 1st of April 2023 are fully materially compliant with E20. And people need to be reassured that in 2021, before we went into E20, there was a very detailed scientific study done by the leading automobile testing agency in the country, which is ARAI (Automotive Research Association of India). It clearly established that the possible damage to cars and two wheelers which are old is not there. It's very insignificant. And it also established that the fuel efficiency loss is to the extent of 2 to 4 per cent, not significant." On ethanol, he says, "As per the latest statistics from the government, the program so far has helped save 1.9 trillion rupees. Out of that, 1,60,000 crores has gone to farmers. So in the case of India, it's not only helped us to in some way mitigate the energy crisis, but it's also helped us to help the farmers...The reason why not just India, but many other countries are doing it is for energy security, for the agrarian economy, as well as for fighting climate change and environmental purposes."
















The surge in global fuel prices since the outbreak of the West Asia conflict offers a revealing comparison of how different countries have managed economic shocks. The closure of the Strait of Hormuz, the world’s most critical oil chokepoint, and the prolonged disruption of shipments sent Brent crude soaring above $100 per barrel through much of April and early May. Across the world, consumers have felt the impact directly at fuel stations. But India stands out as a striking exception. Between 23 February and 15 May 2026, nearly every major economy saw sharp increases in petrol and diesel prices. In several countries, the rise has been staggering: • Myanmar: Petrol +89.7%, Diesel +112.7% • Malaysia: Petrol +56.3%, Diesel +71.2% • Pakistan: Petrol +54.9%, Diesel +44.9% • UAE: Petrol +52.4%, Diesel +86.1% • United States: Petrol +44.5%, Diesel +48.1% • Sri Lanka: Petrol +38.2%, Diesel +41.8% • UK: Petrol +19.2%, Diesel +34.2% • Germany: Petrol +13.7%, Diesel +19.8% • Japan: Petrol +9.7%, Diesel +11.2% India recorded the smallest material increase among all major economies: Petrol: +3.2% Diesel: +3.4% Only Saudi Arabia reported zero change due to direct state subsidy structures. Among major market economies, India has effectively experienced the lowest increase. This did not happen by accident. For seventy-six days after the escalation in West Asia, India’s public sector oil marketing companies, accounting for nearly 90% of fuel retail sales, kept prices largely unchanged despite rising global crude costs. Instead of immediately passing on the burden to citizens, they absorbed substantial under-recoveries at the refinery gate. Reported estimates suggest daily under-recoveries had approached nearly ₹1,000 crore. The ₹3 per litre revision announced on 15 May is the first price revision in almost four years and amounts to only about a 3.5% increase on a base of approximately ₹95 per litre. The contrast with the rest of the world is stark. In liberalised markets, consumers have absorbed shocks immediately. Pakistanis are paying nearly 55% more for petrol than three months ago. Malaysians over 56% more. Americans nearly 45% more. Several countries have seen diesel rise by 50–100%, reflecting disruptions in trade, logistics and freight. India, however, managed to shield consumers from global volatility for over two months before implementing a calibrated increase. This matters because fuel prices do not remain confined to petrol pumps. They affect transport costs, food inflation, manufacturing, logistics and household budgets. Containing fuel volatility is also about containing inflation. The story here is not merely about a ₹3 increase. The story is that while much of the world adjusted through increases of 10%, 20%, 50%, and in some cases nearly 90%, India limited the impact on its citizens to just over 3%. That is the context behind the numbers.







