Indian motorists have collectively spent an estimated ₹88,234 crore extra on fuel over the past three years because of the lower fuel efficiency of E20 petrol, according to a new report. The analysis argues that while India’s ethanol blending programme has helped reduce crude oil imports and support domestic ethanol production, vehicle owners have borne the cost through increased fuel consumption.
The findings have intensified the ongoing debate over the benefits and trade-offs of India’s transition to 20% ethanol-blended petrol (E20).
Why Does E20 Affect Mileage?
E20 petrol contains 20% ethanol and 80% petrol. Since ethanol has a lower energy content than conventional petrol, vehicles generally require slightly more fuel to travel the same distance.
The report estimates that this reduction in fuel efficiency has resulted in motorists purchasing additional fuel worth ₹88,234 crore between 2023 and 2026.
Government agencies have also acknowledged that some older vehicles may experience a 3–5% reduction in fuel economy, although they maintain that the impact varies depending on driving conditions, vehicle maintenance and engine design. :contentReference[oaicite:0]{index=0}
How Was The Estimate Calculated?
The report analysed official fuel consumption data and estimated the additional quantity of petrol required because of the lower calorific value of ethanol.
According to the analysis, millions of vehicle owners collectively consumed more fuel than they would have with conventional petrol, resulting in an additional expenditure running into tens of thousands of crores over the three-year period.
The report argues that while the cost per vehicle may appear relatively small, the nationwide impact becomes substantial because of India’s large and growing vehicle population.
Government Continues To Defend E20
The Centre has consistently defended the ethanol blending programme, saying it delivers long-term economic and environmental benefits.
According to the government, E20 helps reduce India’s dependence on imported crude oil, lowers greenhouse gas emissions, improves energy security and provides additional income opportunities for farmers by increasing demand for ethanol produced from agricultural feedstock.
Officials have also maintained that extensive testing by government agencies and automobile manufacturers found no significant engine damage or abnormal wear due to E20 when used under prescribed standards. :contentReference[oaicite:1]{index=1}
Debate Over Consumer Costs
While supporters view ethanol blending as an important energy transition policy, critics argue that consumers should have greater choice, including access to lower ethanol blends or pure petrol where feasible.
The debate has gained momentum in recent months as motorists have raised concerns over mileage, especially in older vehicles. At the same time, the government has clarified that there is currently no decision to increase ethanol blending beyond 20%, and any future move would follow detailed studies and stakeholder consultations. :contentReference[oaicite:2]{index=2}
Balancing Sustainability And Affordability
India achieved its 20% ethanol blending target ahead of schedule, marking a significant milestone in its clean energy strategy. Going forward, policymakers are likely to face the challenge of balancing environmental goals, energy security and affordability for consumers while ensuring that future fuel policies are supported by scientific evidence and transparent public communication.
Summary
A new report estimates that Indian motorists spent an additional ₹88,234 crore on fuel between 2023 and 2026 because E20 petrol delivers lower mileage than conventional petrol. While critics say consumers are bearing the cost of the ethanol blending programme, the government maintains that E20 reduces oil imports, cuts emissions, supports farmers and causes only a limited impact on fuel efficiency in most vehicles.
