The Ministry of Petroleum and Natural Gas has issued a comprehensive clarification on concerns raised about the impact of 20% Ethanol Blended Petrol (E20) on vehicle mileage and lifespan, reaffirming its environmental, economic, and performance benefits.
The ministry emphasised that biofuels and natural gas are “bridge fuels” — enabling a non-disruptive transition toward India’s Net Zero target by 2070. A NITI Aayog study has shown that greenhouse gas emissions from sugarcane- and maize-based ethanol are 65% and 50% lower, respectively, than those from petrol.
Beyond emission cuts, ethanol blending has transformed rural economies by eliminating sugarcane arrears, improving maize cultivation viability, and raising farmer incomes — helping to address the problem of farmer suicides in regions like Vidarbha. Money once spent on crude oil imports now flows to farmers, making them “Urjadaatas” (energy providers) as well as “Annadatas” (food providers).
From 2014-15 to July 2025, ethanol blending by public sector oil marketing companies (OMCs) saved over ₹1.44 lakh crore in foreign exchange, substituted about 245 lakh metric tonnes of crude oil, and reduced CO₂ emissions by approximately 736 lakh metric tonnes — equivalent to planting 30 crore trees. At 20% blending, this year alone is expected to see ₹40,000 crore in payments to farmers and about ₹43,000 crore in forex savings.
Concerns about E20 affecting performance were anticipated in 2020 and studied extensively by an Inter-Ministerial Committee, supported by research from IOCL, ARAI, and SIAM. Findings show that E20 offers better acceleration, ride quality, and around 30% lower carbon emissions than E10. Its higher octane number (~108.5 vs. petrol’s 84.4) improves anti-knock performance, especially in modern engines, and enhances efficiency in city driving.
The ministry dismissed claims of a “drastic” mileage drop, noting that fuel efficiency depends on factors such as driving habits, maintenance, tyre pressure, and air conditioning load. Many vehicles have been E20-compatible since as early as 2009, meaning no efficiency loss in such models.
The government stressed that reverting to unblended petrol (E0) would erase environmental and energy-transition gains. The roadmap for E20 has been public since 2021, giving industry ample time to adapt technology, supply chains, and infrastructure.
International experience also supports the shift — Brazil has been running on E27 fuel without issues for years, using vehicles from the same manufacturers that operate in India. BIS specifications and automotive industry standards ensure E20 safety. For older vehicles, only minor and inexpensive rubber part replacements may be needed during routine servicing.
On pricing concerns, the ministry clarified that while ethanol was once cheaper than petrol, procurement costs have risen — with the current weighted average price at ₹71.32/litre. Despite this, OMCs continue blending due to the programme’s benefits for energy security, farmer welfare, and sustainability.
The government also rejected rumours that E20 usage could void vehicle insurance, calling such claims baseless and rooted in misinterpretation. Any move beyond E20 will be carefully evaluated, with consultations involving vehicle manufacturers, feedstock suppliers, oil companies, and ethanol producers. The current plan commits to E20 until 31 October 2026, with future decisions pending committee recommendations and stakeholder consensus. The ministry reaffirmed its commitment to cleaner, sustainable fuel options, implemented in a way that protects consumers and maximises national benefits.
