Why is Brazil at the centre of India's ethanol-blended fuel rollout? Here's what we know
As India accelerates the rollout of E20 petrol, comparisons with Brazil, where ethanol has powered vehicles for decades, have become central to the debate over
As India accelerates the rollout of E20 petrol, comparisons with Brazil, where ethanol has powered vehicles for decades, have become central to the debate over ethanol-blended fuel. According to a Hindustan Times report, Petroleum and Natural Gas Minister Hardeep Singh Puri last year pointed to Brazil's long-standing use of E27 petrol, a blend containing 27% ethanol, saying the country has not reported engine-related issues because of it. Road Transport and Highways Minister Nitin Gadkari has also cited Brazil's success, noting that the country adopted E100 ethanol fuel years ago. Also Read | Gadkari admits E20 fuel affects car mileage, dismisses engine damage concerns According to reports, while Rio de Janeiro's ethanol blending model is often cited by policymakers to back New Delhi's adoption, critics have argued that India's agricultural realities, energy needs and environmental challenges make the Brazilian playbook difficult to replicate. Why is Brazil at the centre of the debate? According to Hindustan Times, Brazil turned to ethanol back in 1973, when the country faced an oil crisis triggered by Arab oil producers, who embargoed the US and its allies over the Yom Kippur War, thereby highlighting the South American country's dependence on imported crude oil.
Brazil, which has long been the world's largest sugarcane grower, already had the raw material and much of the infrastructure. The country has been growing sugarcane since 1532. Additionally, ethanol as a fuel was not new either, with the first ethanol plant opening in 1927 in Alagoas. By 1929, roughly 500 cars in the country's northeast were running on it. According to Bloomberg, Brazil first mandated a 5% ethanol blend in petrol in 1931. The blending requirement was temporarily raised to 50 per cent during World War II due to disrupted oil supplies. However, the country's major push towards ethanol began in 1975 with the launch of the Alcohol Programme, or Pro-Álcool, at a time when low sugar prices and surplus distillation capacity made the initiative economically viable. By 1979, Rio de Janeiro unveiled the Fiat 147, the world's first mass-produced car to run entirely on pure ethanol. Within six years, roughly 75 per cent of the cars could handle ethanol-blended fuel. How is Brazil's system different from India's? According to reports, Brazil follows a different fuel retail model from India.
Motorists can choose between petrol blended with around 27% ethanol (E27) and hydrous ethanol (E100). Pricing has often favoured ethanol, with reports indicating that it has typically been sold at prices 25-35% lower than blended petrol, making it an attractive option for consumers. However, unlike Rio de Janeiro, motorists in New Delhi do not have a choice between multiple ethanol blends at fuel stations. Centre's stance on E20 rollout Following India's adoption of E20, a massive debate has erupted, with motorists flagging a dip in their vehicles' mileage and engine parts corroding since the switch. The debate has also garnered reactions from political leaders, including Karnataka Congress chief BK Hariprasad and Aam Aadmi Party (AAP) convenor Arvind Kejriwal, who have accused the Centre of forcing an "experiment" on drivers who never wanted one. Defending the nationwide adoption of E20 fuel, Puri said that ethanol-blended fuel was already being used extensively without causing technical issues. He added, "There are 20 crore two-wheelers on the road and 20 lakh four-wheelers using this fuel. The automobile manufacturers, as well as the people who service these vehicles, all say there is no difficulty," Moneycontrol reported.
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