{"id":1298714,"date":"2025-08-11T06:00:56","date_gmt":"2025-08-11T00:30:56","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1298714"},"modified":"2025-08-11T06:01:31","modified_gmt":"2025-08-11T00:31:31","slug":"ethanol-blended-petrol-will-be-cheaper-rs-30000-crore-can-be-saved-niti-ayog-report","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/ethanol-blended-petrol-will-be-cheaper-rs-30000-crore-can-be-saved-niti-ayog-report\/","title":{"rendered":"Ethanol Blended Petrol Will Be Cheaper, Rs 30,000 Crore Can Be Saved &#8211; Niti Ayog Report"},"content":{"rendered":"\n<p>The Indian government\u2019s decision to implement 20 percent ethanol blending in petrol marks a nearly 13-fold increase over the past 11 years. While the move aims to reduce oil imports and emissions, it has faced backlash from vehicle owners who fear a drop in performance and higher operating costs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"583\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-11-at-6.00.01\u202fAM-1024x583.png\" alt=\"\" class=\"wp-image-1298727\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-11-at-6.00.01\u202fAM-1024x583.png 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-11-at-6.00.01\u202fAM-300x171.png 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-11-at-6.00.01\u202fAM-768x438.png 768w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-11-at-6.00.01\u202fAM-1536x875.png 1536w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-11-at-6.00.01\u202fAM-2048x1167.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">NITI Aayog\u2019s Recommendations for Price Cuts<\/h3>\n\n\n\n<p>A 2021 NITI Aayog report had projected that a successful E20 rollout could save India around Rs 30,000 crore annually. It recommended lowering retail prices for E20 fuel to offset its lower calorific value and encourage nationwide acceptance. The report also urged the government to consider tax breaks for consumers and a floor price for ethanol to encourage investment in production.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Pricing Controversy and Consumer Concerns<\/h3>\n\n\n\n<p>Although ethanol costs significantly less to produce than pure petrol \u2014 about Rs 61 per litre including GST compared to Rs 95 per litre in Delhi \u2014 pump prices remain similar or even higher in some regions. Taxes, duties, and subsidy policies have prevented these savings from reaching consumers. Some motorists also report decreased fuel efficiency, making their cost per kilometre higher despite the lower production cost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Government and Expert Clarifications<\/h3>\n\n\n\n<p>The Ministry of Petroleum and Natural Gas recently clarified that the mileage drop from E20 is marginal \u2014 about 1 to 2 percent for vehicles designed for E10 and tuned for E20, and 3 to 6 percent for others. These figures align with NITI Aayog\u2019s estimates, which put the drop at 6 to 7 percent for older vehicles not originally designed for ethanol blends. The report noted that engine modifications and tuning can reduce this loss.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Industry Response and Political Statements<\/h3>\n\n\n\n<p>Manufacturers have been upgrading engines and materials to be E10-compatible since 2022, with further modifications needed for full E20 efficiency. The Society of Indian Automobile Manufacturers (SIAM) has stated that efficiency loss can be reduced with proper hardware and calibration. Meanwhile, Union Minister Nitin Gadkari has dismissed claims of vehicle damage from E20, suggesting that misinformation is being spread by vested interests in the petroleum sector.<\/p>\n\n\n\n<p>The government maintains that E20 offers environmental and economic benefits, but the debate over pricing and performance is likely to continue unless policy adjustments address consumer concerns directly.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.financialexpress.com\/auto\/news\/ethanol-free-petrol-should-you-go-for-100-octane-fuel\/3936785\/\">Image Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Indian government\u2019s decision to implement 20 percent ethanol blending in petrol marks a nearly 13-fold increase over the past 11 years. While the move aims to reduce oil imports and emissions, it has faced backlash from vehicle owners who fear a drop in performance and higher operating costs. NITI Aayog\u2019s Recommendations for Price Cuts [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1298727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[8439,8438],"class_list":["post-1298714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-ethanol-petrol","tag-niti-ayog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ethanol Blended Petrol Will Be Cheaper, Rs 30,000 Crore Can Be Saved - Niti Ayog Report - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/ethanol-blended-petrol-will-be-cheaper-rs-30000-crore-can-be-saved-niti-ayog-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ethanol Blended Petrol Will Be Cheaper, Rs 30,000 Crore Can Be Saved - Niti Ayog Report - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"The Indian government\u2019s decision to implement 20 percent ethanol blending in petrol marks a nearly 13-fold increase over the past 11 years. While the move aims to reduce oil imports and emissions, it has faced backlash from vehicle owners who fear a drop in performance and higher operating costs. 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