New Delhi, May 26 -- Consumer adoption of E20 fuel in India may remain limited unless ethanol-blended petrol is priced lower or at least competitively compared to conventional petrol, according to a report by Infomerics Ratings.

The report stated that while India has made significant progress in accelerating ethanol blending under its Ethanol Blended Petrol (EBP) programme, the next phase of the transition must focus on affordability, sustainability and technological preparedness.

It stated, "Unless ethanol-blended petrol is priced lower or at least competitively with conventional petrol, consumer adoption may remain limited despite government mandates".

The report suggested that fiscal incentives, tax rationalisation and targeted subs...