E20 petrol may cut mileage by up to 5% but offers cleaner combustion, energy security benefits: Ministry

Published 10 July 2026 · india

Petrol blended with 20% ethanol (E20) can reduce fuel economy by 3-5% in some vehicles, the Oil Ministry said on Friday (July 10, 2026), but

Petrol blended with 20% ethanol (E20) can reduce fuel economy by 3-5% in some vehicles, the Oil Ministry said on Friday (July 10, 2026), but argued the impact is outweighed by benefits, including a higher octane rating, superior anti-knock characteristics, faster combustion, better pickup, smoother acceleration, cleaner engine operation, and lower lifecycle carbon emissions. In a detailed question-and-answer document issued to counter criticism of the Ethanol Blended Petrol Programme, the Ministry of Petroleum and Natural Gas said E20 was a "cleaner, higher-quality and more efficient fuel" than E10 or pure petrol and had been rolled out only after years of scientific testing, consultations with automobile manufacturers and the expansion of domestic ethanol production. The Ministry rejected concerns that the programme had been implemented too quickly, saying India's ethanol blending initiative dates back to pilot projects launched in 2001, with 5% blending introduced in parts of the country by 2006.

While ethanol blending remained around 1.5% until 2014, the government accelerated production after introducing the Policy on Biofuels in 2018 and expanding feedstocks beyond sugarcane. India achieved 10% ethanol blending in 2022, ahead of schedule, and reached 20% blending during the 2025-26 ethanol supply year after investments in dedicated ethanol plants, storage and logistics, the ministry said. Automobile firms ‘forced’ to mislead people on E20 fuel: Kejriwal Addressing concerns over older vehicles, the Ministry said E20 underwent extensive testing covering engine durability, fuel systems, material compatibility, corrosion resistance, drivability and emissions before its nationwide rollout. It cited feedback from automobile manufacturers, including Maruti Suzuki and Hero MotoCorp, saying they had not reported E20-related corrosion, abnormal wear or component-life damage in vehicles serviced under real-world conditions.

The Ministry also dismissed demands for petrol pumps to offer multiple fuel grades such as pure petrol, E10 and E20, saying maintaining parallel nationwide supply chains would increase logistics costs and complicate fuel distribution across India's network of more than 100,000 retail outlets. On pricing, the Ministry said E20 is not necessarily cheaper than conventional petrol because ethanol procurement prices are fixed at remunerative levels to support farmers and can exceed the cost of petrol when international crude prices are relatively low. It said the programme's objective was to reduce India's dependence on imported crude, improve price stability and strengthen energy security rather than lower pump prices. According to the Ministry, the ethanol blending programme has saved more than ₹1.97 lakh crore in foreign exchange, displaced nearly 316 lakh tonnes of crude oil imports, reduced around 952 lakh tonnes of carbon dioxide emissions and transferred over ₹1.66 lakh crore to farmers since the 2014-15 ethanol supply year.