New Delhi, July 11 -- The government on Friday reiterated that 20% ethanol blended petrol (E20) is a more efficient fuel than E10 or pure petrol , and said moving to the blend required an investment of around Rs.100,000 crore a year over the past several years, financed by state-owned banks. The government also rejected the suggestion to give consumers the option of filling up pure petrol or E10 or E20 on the ground of infrastructure constrains and said doing this would be a "logistical challenge". E20 offers a significantly higher-octane rating, superior anti-knock characteristics, faster combustion, better pickup, smoother acceleration and cleaner engine operation, the petroleum ministry said in a statement issued in the format of frequently asked questions (FAQs). The FAQ admitted the reduction in mileage, but said it was important to look at the larger picture. "It is true that in some vehicles there may be a 3-5% reduction in fuel economy. But mileage is only one parameter," it said. E20 offers a significantly higher-octane rating, superior anti-knock characteristics, faster combustion, better pickup, smoother acceleration and cleaner engine operation. The ministry's outreach comes amidst a raging controversy, especially on social media, over E20, and the impact it has on cars. To be sure, the availability of only E20 petrol is a problem; most vehicles made before 2023 are not E20 compliant. That means vehicles that are even four-years old could see some issues from using E20 fuel. But the government rubbished the suggestion that every petrol pump should stock pure petrol, E10 and E20 simultaneously, saying this ignores the realities of India's fuel distribution network. India has over 1 lakh retail outlets, supported by an extensive network of refineries, terminals, depots and pipelines. Maintaining multiple grades of base petrol across this vast supply chain would create an enormous logistical challenge, increase handling costs, complicate inventory management and reduce operational efficiency, it said. "People often cite premium petrol as an example. That comparison is misplaced. Premium fuels are niche products sold in limited quantities at a significant price premium because specialised performance-enhancing additives are blended into them. They are not separate nationwide base fuel streams," it said. Running parallel nationwide supply chains for pure petrol, E10 and E20 would be an entirely different proposition, it added. "There is another aspect that cannot be ignored. Over the past several years, public sector banks have financed nearly Rs.1 lakh crore/yr of investments in ethanol production and associated infrastructure. Dedicated ethanol plants, distilleries, storage facilities and logistics networks have been created to meet India's blending targets. If, after creating this capacity, we were to arbitrarily revert to E10, what happens to these investments?" the statement said....