Ministry of Petroleum Clarifies Benefits of E20 Ethanol Blended Petrol

The Ministry of Petroleum has clarified the benefits of E20 ethanol blended petrol, addressing concerns about mileage reduction and vehicle compatibility. While some vehicles may experience a slight decrease in mileage, the ministry emphasizes that the advantages, including enhanced energy security and reduced carbon emissions, are significant. The E20 initiative, which began in 2001, aims to decrease dependence on imported oil and stabilize fuel prices. With a target of 20% blending by 2025-26, the program has already achieved substantial savings in foreign exchange and reduced emissions. Read on to learn more about the ministry's insights and the future of ethanol blending in India.

By Narendra Chaudhary Jul 10, 2026, 17:08 IST

E20 Ethanol Blended Petrol: Key Insights

The Ministry of Petroleum and Natural Gas has clarified that using 20% ethanol blended petrol (E20) may lead to a reduction in mileage for some vehicles by approximately 3 to 5%. However, the ministry emphasizes that the advantages of E20 far outweigh this minor decrease. The adoption of E20 is expected to enhance energy security, reduce carbon emissions, and improve engine performance. According to the ministry, E20 has a higher octane rating, better anti-knock properties, and allows for quicker combustion, resulting in improved vehicle pickup.

Addressing Concerns About Ethanol Blended Petrol

In response to questions regarding the ethanol blended petrol (EBP) program, the ministry released a FAQ document stating that E20 is cleaner, of better quality, and more efficient compared to E10 and regular petrol. The implementation of E20 was not rushed; it followed years of scientific testing, extensive discussions with vehicle manufacturers, and an increase in domestic ethanol production capacity. The initiative began in 2001 with pilot projects, and by 2006, a 5% ethanol blended petrol supply was initiated in certain regions.

Progress and Future Goals

The ministry noted that by 2014, ethanol blending was only at 1.5%, but following the introduction of the National Biofuel Policy in 2018, which included raw materials beyond sugarcane, the government accelerated ethanol production. India achieved the target of 10% ethanol blending ahead of schedule in 2022, and with investments in ethanol production plants, storage, and logistics, the goal for 20% blending by 2025-26 is also set to be met.

Concerns Regarding Older Vehicles

Addressing concerns about older vehicles, the ministry stated that before the nationwide rollout of E20, extensive testing was conducted on engine durability, fuel systems, compatibility with various materials, corrosion resistance, and emissions. Feedback from manufacturers like Maruti Suzuki and Hero MotoCorp indicated no reports of rust, unusual wear, or premature failure of parts in vehicles using E20 under real-world conditions.

Clarification on Fuel Availability and Pricing

The ministry dismissed demands for the availability of pure petrol, E10, and E20 at petrol stations, explaining that maintaining a parallel supply chain across the country would increase logistics costs and complicate distribution at over 100,000 retail fuel centers. Regarding pricing, the ministry clarified that E20 may not necessarily be cheaper than traditional petrol, as the purchase price of ethanol is set at a profitable level to support farmers, and it could be more expensive than petrol if crude oil prices fall in the international market.

Objectives of the Ethanol Blending Program

The ministry emphasized that the goal of this program is not to reduce petrol prices at fuel stations but to decrease India's dependence on imported crude oil, stabilize prices, and enhance energy security. Since the ethanol supply year of 2014-15, the ethanol blending program has resulted in savings of over ₹1.97 lakh crore in foreign exchange, reduced the need for crude oil imports by approximately 316 million tons, and decreased carbon dioxide emissions by around 952 million tons, while also providing over ₹1.66 lakh crore to farmers. The ministry urged consumers not to be misled by misinformation regarding E20, assuring that it has been certified by vehicle manufacturers, testing agencies, oil marketing companies, and regulators before its nationwide implementation.

Minister's Remarks on E20

Additionally, Union Minister for Road Transport and Highways Nitin Gadkari mentioned that due to the lower calorific value of ethanol compared to petrol, there might be a slight decrease in mileage when using E20. However, he dismissed claims of vehicle damage due to E20, stating that it was implemented nationwide only after thorough investigations by ARAI and vehicle manufacturers.