Outlook Business Desk
The Ministry of Petroleum and Natural Gas stated that E20 petrol, containing 20% ethanol, enhances vehicle acceleration, reduces carbon emissions, and has minimal effect on fuel efficiency. Authorities also clarified that E20 does not affect the validity of vehicle insurance.
The ministry noted that vehicles tuned for E20 deliver improved acceleration and smoother ride quality, particularly in city driving. With an octane number around 108.5 compared to petrol’s 84.4, ethanol-blended fuels boost air-fuel mixture density, enhancing engine performance and efficiency, The Economic Times reported.
The ministry stated that claims about E20 drastically lowering mileage are misleading. Fuel efficiency depends on driving habits, maintenance, tyre condition, and air conditioning. Research by Indian Oil Corporation, Automotive Research Association of India, and the Society of Indian Automobile Manufacturers shows minimal impact.
The government rejected fears that using E20 could void motor insurance. Officials clarified that confusion began after a social media post incorrectly claimed insurance companies might deny claims if vehicles ran on E20. They stressed that all vehicles using E20 retain valid insurance, and authorised service stations are available for tuning or parts replacement if needed.
Some car models in India have been E20-compatible since 2009. Automakers confirmed that minor adjustments may be needed for older vehicles, such as replacement of rubber parts or gaskets, which are inexpensive and manageable during regular servicing.
E20 cuts carbon emissions by 30% compared to E10. Between 2014–2025, public sector oil companies saved ₹1.44 lakh crore in foreign exchange and avoided around 736 lakh metric tonnes of CO₂ emissions, supporting India’s net zero goals.
Money once spent on crude oil imports is now flowing into ethanol procurement, expected to bring farmers about ₹40,000 crore in 2025. This shift is boosting rural incomes, supporting sugarcane and maize cultivation, and creating more opportunities in agriculture.
Brazil also successfully runs on E27 ethanol fuel, showing zero major issues. Similar blends are used globally with the same automakers that sell in India, confirming vehicle safety and performance, and demonstrating that ethanol-blended fuels are viable for modern engines.
The government plans to maintain E20 use until October 31, 2026. Any decision to move beyond this will involve consultations with automakers, ethanol producers, and fuel suppliers. The programme remains a key bridge fuel in India’s path toward net-zero emissions by 2070.