New Delhi, July 10 -- The Centre on Friday defended the nationwide rollout of petrol blended with 20 per cent ethanol, saying the fuel may reduce mileage by 3 to 5 per cent in some vehicles but offers wider gains in engine performance, cleaner emissions, energy security and support for farmers. Releasing a detailed set of Frequently Asked Questions (FAQs), the Ministry of Petroleum and Natural Gas sought to address growing public criticism over E20 fuel, including concerns about lower fuel economy, possible engine damage in older vehicles and the lack of an option to buy pure petrol or lower ethanol blends at fuel stations. The ministry said the programme was introduced after more than two decades of planning, scientific testing and consultations with automobile manufacturers, and urged consumers not to be influenced by "misinformation" circulating on social media.
The government described the Ethanol Blended Petrol (EBP) Programme as a key part of India's energy strategy, aimed at reducing dependence on imported crude oil, improving energy security, supporting the farming sector and cutting carbon emissions through greater use of domestically produced renewable fuel.
India achieved the milestone of 20 per cent ethanol blending in April 2025, five years ahead of its original 2030 target. The ministry said the country reached the target during the 2025-26 ethanol supply year after expanding domestic ethanol production and investing in dedicated ethanol plants, storage facilities and logistics infrastructure.
Rejecting criticism that the transition to E20 was rushed, the ministry traced the programme's origins to a pilot project launched in 2001. The blending programme was formally announced in 2004 and E5 fuel was introduced in several states in 2006. Although blending remained around 1.5 per cent until 2014 because ethanol production relied mainly on sugarcane, the National Policy on Biofuels introduced in 2018 expanded feedstocks to include maize and surplus grain, allowing production to rise sharply.
The ministry said NITI Aayog released a detailed roadmap in 2021 after consulting automobile manufacturers, oil companies and agricultural experts. Around the same time, Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd invited private investment in dedicated ethanol plants backed by assured purchase agreements and financing support.
According to the government, ethanol blending increased steadily from about 8.1 per cent in 2020-21 to 10 per cent in 2021-22, 12.1 per cent in 2022-23, 14.6 per cent in 2023-24, 19.2 per cent in 2024-25 and 20 per cent during the current ethanol supply year.
The ministry acknowledged that some motorists could see a 3 to 5 per cent reduction in fuel economy after switching to E20. However, it said mileage is influenced by several other factors, including driving habits, tyre pressure, servicing and air conditioner usage.
It argued that E20 provides several technical advantages over conventional petrol. Ethanol has a Research Octane Number of around 108.5 compared with about 84.4 for petrol, raising the effective octane rating of Indian petrol to roughly 95. According to the ministry, this results in better combustion, superior anti-knock properties, smoother acceleration, faster combustion, improved pickup, cleaner engine operation and significantly lower particulate emissions. It also said lifecycle carbon emissions can fall by nearly 40 per cent.
The government also rejected concerns that E20 damages engines, fuel lines or rubber components, particularly in older vehicles not originally certified for the higher blend.
It said extensive laboratory testing and field validation were carried out before nationwide introduction, covering engine durability, corrosion resistance, drivability, emissions, material compatibility and fuel system performance. The ministry said expert committees involving the Automotive Research Association of India, the Society of Indian Automobile Manufacturers, automobile companies and oil firms guided the transition from E10 to E20.
Citing industry feedback, the ministry said Maruti Suzuki serviced 2.84 crore vehicles during the 2025-26 financial year, including 1.5 crore older vehicles that were not originally certified for E20, and reported no E20-related corrosion, abnormal wear or reduction in component life. Hero MotoCorp also reported similar field experience.
"If E20 genuinely damaged rubber hoses, fuel lines or engines, this would have shown up as a wave of warranty claims and complaints. That wave never happened," the ministry said. The government added that ethanol and blended petrol conform to strict Bureau of Indian Standards specifications and undergo quality checks throughout the supply chain, from distilleries to depots and retail outlets. It said state governments have also been instructed to maintain zero tolerance against adulteration.
Responding to demands that consumers should be allowed to choose between pure petrol, E10 and E20, the ministry said such a system would be impractical given India's fuel distribution network of more than one lakh retail outlets linked through refineries, pipelines, terminals and depots.
Maintaining three parallel grades of base fuel would increase logistics costs, complicate inventory management and reduce operational efficiency, it said. The ministry also noted that public sector banks have financed nearly Rs 1 lakh crore every year in ethanol plants, storage and logistics infrastructure. Reverting to lower blend levels would leave much of that investment underutilised while affecting farmers, cooperatives, entrepreneurs and financial institutions that invested based on national policy.
The ministry also explained why E20 is not sold at a lower price despite ethanol being domestically produced. It said ethanol procurement prices are fixed to ensure fair returns to farmers. For instance, maize-based ethanol is procured at around Rs 71.86 per litre before taxes, transport and storage. When global crude oil prices remain around 70 US dollars per barrel, E20 may cost as much as or even more than conventional petrol. Ethanol becomes cheaper only when crude prices rise sharply to around 120 to 130 US dollars per barrel.
Even so, the ministry said consumers benefit because nearly one-fifth of every litre of petrol sold is sourced domestically, reducing India's exposure to fluctuations in global crude prices and supply disruptions.
The government also pointed to fuel price trends between June 2022 and June 2026, saying petrol prices in Delhi increased by only 5.58 per cent during the period, compared with increases of nearly 40 per cent in Pakistan and Bangladesh, over 36 per cent in Sri Lanka, around 20 per cent in Nepal and about 18 to 19 per cent in major European countries including France, Germany and Italy. According to the ministry, since the 2014-15 ethanol supply year, the programme has saved more than Rs 1.97 lakh crore in foreign exchange, displaced nearly 316 lakh tonnes of crude oil imports, reduced around 952 lakh tonnes of carbon dioxide emissions and transferred over Rs 1.66 lakh crore to farmers.
The ministry also highlighted that ethanol blending is widely used internationally. The United States has adopted E10 as its standard petrol blend and is expanding E15, while many flex-fuel vehicles there can use blends up to E85. Brazil currently mandates E27 and is moving towards around 35 per cent blending, with more than 80 per cent of new vehicles capable of running on higher ethanol blends or pure hydrous ethanol. Japan, Canada, Thailand and several European countries have also adopted ethanol blending as part of their clean fuel strategies.
The clarification comes amid continuing public debate over E20 fuel and reports that the government may delay its proposed move to E25 as it reviews concerns raised by consumers and industry.
Published by HT Digital Content Services with permission from Millennium Post.