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New Delhi, July 10
The Centre on Friday acknowledged that petrol blended with 20 percent ethanol, known as E20, may reduce fuel efficiency by 3 to 5 percent in some vehicles, but maintained that the fuel offers significant environmental, economic and performance benefits that justify its nationwide adoption.
In a detailed question-and-answer document released by the Ministry of Petroleum and Natural Gas, the government sought to address concerns surrounding the Ethanol Blended Petrol Programme, saying E20 is a cleaner and higher-quality fuel than conventional petrol or E10. It said the transition to E20 followed years of scientific testing, consultations with automobile manufacturers and investments to boost domestic ethanol production.
The ministry said E20 provides a higher octane rating, improved anti-knock performance, faster combustion, smoother acceleration, better engine response and cleaner engine operation. It added that the fuel also helps reduce lifecycle carbon emissions, although motorists may experience a marginal decline in mileage depending on the vehicle.
Responding to criticism that the programme was introduced too quickly, the ministry said India’s ethanol blending journey began more than two decades ago. Pilot projects were launched in 2001, followed by the introduction of 5% ethanol blending in parts of the country by 2006.
Ethanol blending remained around 1.5% until 2014, after which the government accelerated production through policy reforms. The National Policy on Biofuels, introduced in 2018, expanded the range of feedstocks used for ethanol production beyond sugarcane, helping increase domestic supply.
India achieved 10% ethanol blending in 2022 ahead of its target and reached 20% blending during the 2025-26 ethanol supply year following investments in ethanol production plants, storage facilities and fuel distribution infrastructure, the ministry said.
Addressing concerns over vehicle compatibility, the ministry said E20 fuel was extensively tested before its rollout. The testing covered engine durability, fuel systems, material compatibility, corrosion resistance, emissions and overall drivability.
It also cited feedback from automobile manufacturers, including Maruti Suzuki and Hero MotoCorp, stating that they had not reported corrosion, abnormal engine wear or reduced component life linked to E20 in vehicles operating under normal conditions.
The ministry rejected suggestions that petrol pumps should simultaneously sell pure petrol, E10 and E20. It said maintaining separate fuel supply chains across India’s network of more than one lakh retail outlets would significantly increase logistics costs and complicate fuel distribution.
On fuel prices, the ministry clarified that E20 is not intended to be cheaper than conventional petrol. It said ethanol procurement prices are fixed at remunerative levels to ensure fair returns for farmers and may sometimes exceed petrol prices, particularly when global crude oil prices remain low.
According to the government, the primary objective of the ethanol blending programme is to reduce India’s dependence on imported crude oil, improve energy security and enhance long-term price stability rather than lower retail fuel prices.
The ministry said the programme has delivered substantial economic and environmental gains since the 2014-15 ethanol supply year. It claimed ethanol blending has helped save more than ₹1.97 lakh crore in foreign exchange, replace nearly 316 lakh tonnes of crude oil imports, reduce around 952 lakh tonnes of carbon dioxide emissions and transfer over ₹1.66 lakh crore to farmers.
The ministry also urged consumers to rely on verified information about E20, saying the fuel had been validated through scientific testing and assessments by automobile manufacturers, testing agencies, oil marketing companies and regulators before being introduced nationwide.
