New Delhi, Aug. 8 -- Petroleum minister Hardeep Singh Puri on Friday dismissed concerns that ethanol-blended petrol was harming vehicles, saying that E20 fuel, which comprises 80% petrol and 20% ethanol, reduces performance by a marginal 1-3% and causes no engine failures.

Amid public outcry over mileage loss, Puri called ethanol-blending a "very successful story" that cuts oil imports and benefits farmers. India, he said, has rolled out E20 several years ahead of schedule and will raise the blend further gradually.

"Biofuels is more than just ethanol, but ethanol is a very big story. Ethanol is a very successful story. And there is no problem with the engine. The German, Japanese, all of them will tell you they're running the same engi...