The Center defended the introduction of 20% ethanol-blended gasoline (E20), claiming that it improves acceleration and ride quality, lowers pollution, and saves oil imports.
While acknowledging that mileage issues were expected in 2020, the Ministry of Petroleum and Natural Gas pointed out that there are numerous factors that affect mileage, such as maintenance, driving habits, tire pressure, and “air conditioning load.”
Centre Backs E20 Petrol, Citing Lower Pollution, Oil Savings, and Better Performance
Some car owners claim E20 reduces mileage and can cause component failures in engines not tuned for higher ethanol content.
The ministry said E20 supports India’s climate goals and net zero target for 2070.
Quoting NITI Aayog research, it stated that sugarcane-based ethanol reduces GHG emissions by 65% and maize-based ethanol by 50% compared to petrol.
The ministry said higher farmer incomes from ethanol production have helped curb farmer suicides, especially in Vidarbha.
It highlighted that between ESY 2014–15 and ESY 2024–25 (up to July 2025), ethanol blending saved ₹1,44,087 crore in foreign exchange, replaced 245 lakh metric tonnes of crude oil, and cut CO₂ emissions by 736 lakh metric tonnes — equal to planting 30 crore trees.
At 20% blending, payments to farmers this year are expected to be ₹40,000 crore, with forex savings of about ₹43,000 crore.
The ministry said E20 gives “better acceleration, better ride quality and most importantly, lowered carbon emissions by approximately 30% as compared to E10 fuel” due to ethanol’s higher octane number (108.5 vs petrol’s 84.4).
E20-Tuned Vehicles Offer Faster City Acceleration, Improved Efficiency
It added that vehicles tuned for E20 benefit from improved city-driving acceleration and better volumetric efficiency from ethanol’s higher heat of vaporisation.
Calling claims of drastic mileage drops “misplaced,” it said any drop in E10 vehicles is marginal and some manufacturers have sold E20-compatible vehicles since 2009.
Brazil’s successful use of E27 was cited, noting that global automakers like Hyundai, Toyota, and Honda already sell vehicles there without issues.
The ministry said E20 poses no major issues for drivability, startability, or component compatibility, though some older vehicles may need rubber parts or gaskets replaced once in their lifetime — a low-cost process.
On pricing, it said ethanol is now costlier than refined petrol, but oil companies continue blending because it benefits energy security, farmers’ incomes, and environmental sustainability.
Insurance claims will not be affected by E20 use.
The government is committed to E20 until 31 October 2026, and any higher ethanol blend targets will be decided after reviewing an Inter-Ministerial Committee’s report, consulting stakeholders, and making a considered decision.
