The Oil Ministry said E20 petrol may reduce fuel economy by 3-5% in some vehicles, but argued the trade-off is offset by benefits such as cleaner combustion
The ministry said E20 was introduced only after years of testing and consultations with automakers
Manufacturers have not reported significant issues such as corrosion or abnormal engine wear, it added
E20 Petrol May Lower Mileage By Up To 5%, But Have Long-Term Gains: Oil Ministry
According to the ministry, the fuel offers a higher octane rating, improved anti-knock properties, faster combustion, smoother acceleration and cleaner engine operation
E20 Petrol May Lower Mileage By Up To 5%, But Long-Term Gains Outweigh Impact: Oil Ministry
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Petrol blended with 20% ethanol (E20) may reduce fuel economy by around 3-5% in certain vehicles, but the overall benefits of the fuel outweigh the impact, the Ministry of Petroleum and Natural Gas said on Friday.
The ministry described E20 as a "cleaner, higher-quality and more efficient fuel" than E10 or conventional petrol, it said in a frequently asked questions (FAQ) document issued to address criticism of the Ethanol Blended Petrol (EBP) Programme.
Urging consumers not to be swayed by misleading claims, the ministry said E20 had been validated by vehicle manufacturers, testing agencies, oil marketing companies and regulators before being introduced across the country.
According to the ministry, the fuel offers a higher octane rating, improved anti-knock properties, faster combustion, smoother acceleration and cleaner engine operation, while also helping reduce lifecycle carbon emissions.
It also rejected suggestions that India had rushed the transition to E20. It said the country's ethanol blending initiative began with pilot projects in 2001, followed by the introduction of 5% blending in select regions by 2006.
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Ethanol blending remained limited until 2014 before gaining momentum after the National Policy on Biofuels was introduced in 2018 and feedstock sources were expanded beyond sugarcane, according to the ministry.
India achieved 10% ethanol blending in 2022 ahead of schedule and reached the 20% blending milestone during the 2025-26 ethanol supply year following investments in ethanol production capacity, storage and logistics, the ministry said.
Vehicle Compatibility And Fuel Supply
Responding to concerns about the impact of E20 on existing vehicles, the ministry said the fuel underwent extensive testing covering engine durability, corrosion resistance, fuel systems, material compatibility, drivability and emissions before its nationwide rollout.
Citing feedback received from automobile manufacturers, including Maruti Suzuki and Hero MotoCorp, the ministry said there had been no reports of E20-related corrosion, abnormal wear or reduced component life in vehicles operating under real-world conditions.
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The ministry also ruled out offering multiple grades of petrol, such as pure petrol, E10 and E20, across retail outlets.
Maintaining parallel fuel supply chains across India's network of more than one lakh petrol pumps would increase logistics costs and make distribution significantly more complex, it said.
Programme Aimed at Energy Security
The ministry clarified that E20 is not necessarily cheaper than conventional petrol because ethanol procurement prices are fixed at remunerative levels to support farmers. It noted that ethanol can even be costlier than petrol when international crude oil prices remain low.
According to the ministry, the objective of the programme is to reduce dependence on imported crude oil, improve energy security and shield the economy from fluctuations in global oil prices rather than lower retail fuel prices.
It said the ethanol blending programme has saved more than ₹1.97 lakh crore in foreign exchange since the 2014-15 ethanol supply year, displaced nearly 316 lakh tonnes of crude oil imports, reduced around 952 lakh tonnes of carbon dioxide emissions and transferred over ₹1.66 lakh crore to farmers.
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