Oil Ministry Defends E20 Rollout Despite Mileage Concerns
The Ministry of Petroleum and Natural Gas on Friday acknowledged that petrol blended with 20 percent ethanol (E20) could cause a 3–5 percent decrease in fuel economy in some vehicles. However, it emphasized that overall improvements in engine performance, energy security, and emissions reduction significantly outweigh the slight impact on mileage.
The ministry defended the nationwide rollout of E20 fuel in a comprehensive question-and-answer document, characterizing it as a cleaner, higher-quality, and more efficient alternative to traditional petrol. The document was issued to address concerns about the Ethanol Blended Petrol (EBP) Programme.
Decades of Preparation Preceded the Shift
According to the ministry, years of scientific confirmation, thorough vehicle testing, discussions with automakers, and investments in domestic infrastructure for ethanol production preceded the shift. Ethanol blending in India began with pilot projects in 2001. In 2006, 5 percent ethanol-blended fuel was introduced in a few regions. Blending levels remained around 1.5 percent until 2014, but after the National Policy on Biofuels was implemented in 2018 and the feedstock base was expanded beyond sugarcane, the rate increased.
The ministry stated that after significant investments in ethanol production capacity, storage, and supply chain infrastructure, India met the 20 percent blending target for the 2025–2026 ethanol supply year and achieved 10 percent ethanol blending ahead of schedule in 2022.
Economic and Environmental Benefits Highlighted
The ministry highlighted the program's economic impact, noting that since the 2014–15 ethanol supply year, ethanol blending has helped save over Rs 1.97 lakh crore in foreign exchange, replaced nearly 316 lakh tonnes of crude oil imports, decreased about 952 lakh tonnes of carbon dioxide emissions, and transferred over Rs 1.66 lakh crore to farmers.
These figures underscore the government's argument that the benefits of ethanol blending extend beyond fuel efficiency to broader economic and environmental gains.
Vehicle Testing and Compatibility
In response to concerns about how E20 may affect automobiles, the ministry noted that the fuel underwent rigorous testing covering engine durability, drivability, corrosion resistance, emissions, fuel systems, and material compatibility before being made available nationwide. It added that automakers such as Hero MotoCorp and Maruti Suzuki have not reported E20-related corrosion, unusual wear, or deterioration in component life under actual operating conditions.
The government acknowledged that because ethanol has less energy per liter than petrol, some vehicles may see a 3–5 percent drop in fuel efficiency. However, it argued that E20 offers several performance advantages, including a higher octane rating, better anti-knock properties, quicker combustion, improved pick-up, smoother acceleration, cleaner engine operation, and reduced lifecycle carbon emissions.
Logistical Challenges and Uniform Fuel Policy
The ministry also rejected proposals to offer pure petrol, E10, and E20 simultaneously at gas stations, stating that operating parallel global supply chains across more than 100,000 retail outlets would dramatically increase logistical costs and complicate fuel distribution. Using different fuel grades would also raise costs, the ministry claimed.
By maintaining a single E20 blend nationwide, the government aims to simplify logistics and ensure consistent fuel quality across the country.
