The government says E20 fuel—petrol blended with ethanol—cannot be priced lower than pure petrol, citing production and policy history. India’s ethanol programme started with a pilot project in 2001 and later moved to a formal policy in 2013. According to the Centre, ethanol blending remained around 1.5% before 2014, when ethanol production depended primarily on seasonal sugarcane crops. This seasonal supply constraint, the government argues, limits steady and large-scale output needed for lower costs. As the policy framework evolved, the Centre’s explanation focuses on why market pricing dynamics and ethanol availability affect the final price of blended fuel. Overall, the account presents E20 as a policy-led transition over time rather than an immediate cost-cutting measure, with earlier low blending levels linked to the nature of feedstock availability. The government’s position is that cost comparisons with pure petrol must consider how ethanol is produced and supplied, rather than assuming that blending itself automatically reduces pump prices.