New Delhi | August 12, 2025 : The Indian government has responded firmly to public concerns and backlash over the introduction of 20% ethanol-blended petrol, known as E20. The Ministry of Petroleum and Natural Gas emphasized that the move not only reduces pollution and oil imports but also improves vehicle performance, including better acceleration and ride quality.

Since the rollout of E20 petrol, some car owners have complained about a noticeable drop in mileage and potential vehicle component failures, especially in engines not specifically tuned for higher ethanol content. However, the Ministry clarified that mileage variations were anticipated as far back as 2020 and any decline is marginal. They also highlighted that mileage depends on multiple factors such as driving style, vehicle maintenance, tyre pressure, and air conditioning load.

The ministry's detailed statement reaffirmed India’s commitment to environmental goals, including achieving net-zero emissions by 2070. Referencing a NITI Aayog study, it noted that greenhouse gas emissions from ethanol derived from sugarcane and maize are 65% and 50% lower respectively than petrol.

The shift to ethanol-based fuel has also positively impacted India’s rural economy. The ministry pointed out that higher incomes for farmers, especially in regions like Vidarbha, have contributed to reducing farmer suicides, a significant social benefit alongside environmental gains.

Between the Ethanol Supply Years (ESY) 2014-15 and 2024-25, Public Sector Oil Marketing Companies have blended ethanol resulting in foreign exchange savings exceeding Rs 1.44 lakh crore and crude oil substitution of around 245 lakh metric tonnes. This has also contributed to a significant reduction in CO2 emissions — equivalent to planting 30 crore trees. For 2025 alone, payments to farmers from ethanol blending are expected to reach Rs 40,000 crore, while forex savings are estimated at Rs 43,000 crore.

Addressing concerns about mileage and performance, the ministry highlighted ethanol’s higher octane number (about 108.5 compared to petrol’s 84.4), which improves fuel efficiency and is especially beneficial for modern high-compression engines. E20 fuel, they explained, delivers better acceleration — a key factor for city driving — by reducing intake manifold temperatures and increasing air-fuel mixture density, thus enhancing volumetric efficiency.

The ministry dismissed claims of drastic mileage reduction as “misplaced,” underscoring that vehicle mileage depends on various external factors beyond fuel composition. Discussions with the Society of Indian Automobile Manufacturers (SIAM) and vehicle makers revealed that any drop in efficiency in vehicles originally designed for E10 fuel is marginal, and some manufacturers have produced E20-compatible vehicles since as early as 2009.

Highlighting global precedents, the ministry cited Brazil’s successful use of E27 fuel blends without issues, noting that major manufacturers like Hyundai, Toyota, and Honda sell vehicles in both countries.

Regarding concerns over wear and tear, the ministry acknowledged that some older vehicles might require earlier replacement of rubber parts and gaskets due to ethanol exposure. However, these replacements are inexpensive, routine, and can be managed easily during authorized servicing — usually only once during a vehicle’s lifetime.

On the question of fuel pricing, the ministry explained that although ethanol prices have risen compared to petrol, oil companies have upheld the blending mandate due to its critical role in energy security, farmer income support, and environmental sustainability.

The ministry also reassured vehicle owners that insurance claims will not be affected by the switch to E20. Further, it confirmed that India’s transition to higher ethanol blends is a carefully monitored process involving extensive stakeholder consultations. The current policy commits to E20 until October 31, 2026, after which a review will determine future ethanol blending targets.

The government’s statements aim to balance environmental responsibility, rural economic development, and consumer concerns as India progresses towards cleaner fuels and a greener future.