India's Shift to 100% Ethanol Blending Faces Challenges from Older Vehicle Owners

India is advancing towards 100% ethanol blending with new flex-fuel vehicles, but many older vehicle owners are struggling with rising costs. A recent survey reveals that over half of these owners wish to revert to lower ethanol blends due to increased fuel bills and repair expenses. The Grain Ethanol Manufacturers Association suggests that ethanol blending could reduce petrol prices by up to Rs 20 per litre, highlighting the potential benefits of this transition. As the country navigates this shift, the concerns of older vehicle owners remain a significant challenge.

By Narendra Chaudhary Jun 5, 2026, 15:45 IST

Challenges for Older Vehicle Owners Amid Ethanol Transition

India is making significant strides towards achieving 100% ethanol blending, particularly with the recent introduction of flex-fuel vehicles by Maruti Suzuki. The government remains hopeful about reaching its E100 target. However, many owners of older vehicles are expressing a desire to revert to lower ethanol blends, such as E0 or E10, due to rising fuel costs and increased repair bills. A survey conducted by LocalCircles revealed that over half of the petrol vehicle owners who purchased their cars before 2023 prefer the option to switch back to E0 or E10. Many have reported that since the nationwide implementation of E20 fuel, their fuel expenses and repair costs have surged. The survey indicated that a significant 52% of respondents have faced additional costs exceeding Rs 5,000, attributed to decreased fuel efficiency and higher repair needs. Specifically, 20% reported extra expenses between Rs 5,000 and Rs 10,000, while 17% noted costs ranging from Rs 10,000 to Rs 15,000. Additionally, 15% of participants indicated spending over Rs 15,000, with only 11% claiming they had not incurred any extra costs. The survey included responses from more than 42,000 owners of older petrol vehicles across 316 districts in India.

Ethanol Blending's Potential to Lower Petrol Prices

In a recent discussion, C.K. Jain, President of the Grain Ethanol Manufacturers Association (GEMA), emphasized that ethanol blending is a crucial strategy for India to reduce its reliance on imports and could potentially lower petrol prices by up to Rs 20 per litre. He pointed out that the current global volatility in crude oil prices, particularly due to tensions in West Asia, reinforces the need for increased ethanol blending in the country. Jain illustrated the potential price reduction by referencing Brazil's fuel dispensing system, where petrol stations offer both standard petrol (similar to India's E20) and higher ethanol blends like E85 or E100. He noted that E100 is exempt from Value Added Tax (VAT), which could lead to a price difference of Rs 20 per litre, as the state imposes VAT of approximately Rs 18 to 20 per litre on regular petrol. Jain explained that since E100 contains no fossil fuel hydrocarbons, it qualifies for this exemption, thereby reducing costs for consumers.