Govt dismisses mileage fears, stands firm on E20 ethanol blending

The government has issued a detailed statement addressing concerns over ethanol-blended petrol, reaffirming its commitment to the E20 programme and calling it a key step in India’s transition towards a greener economy. The statement said biofuels and natural gas are India’s “bridge fuels,” offering a viable, non-disruptive route to achieving the country’s Net Zero target by 2070. A NITI Aayog study on life cycle emissions found that greenhouse gas emissions from sugarcane-based ethanol are 65 per cent lower, and maize-based ethanol 50 per cent lower, than those from petrol.

According to the statement, the ethanol blending programme has delivered multiple benefits beyond reducing pollution, including revitalising the rural economy, eliminating sugarcane arrears, and improving the viability of maize cultivation. Increased farmer incomes have also helped address distress in agrarian regions such as Vidarbha. Between 2014-15 and July 2025, ethanol blending in petrol by public sector oil marketing companies saved over ₹1.44 lakh crore in foreign exchange, substituted about 245 lakh metric tonnes of crude oil, and cut CO₂ emissions by an estimated 736 lakh metric tonnes—the equivalent of planting 30 crore trees.

The statement rejected claims that E20 significantly reduces fuel efficiency, noting that any drop in mileage is marginal and influenced more by factors such as driving habits, vehicle maintenance, tyre pressure, and air conditioning use. It added that many vehicles have been E20-compatible since as far back as 2009. Research by IOCL, ARAI, and SIAM found that E20 fuel delivers better acceleration, improved ride quality, and 30 per cent lower carbon emissions than E10 fuel, aided by ethanol’s higher octane number and superior anti-knocking properties.

The government also dismissed fears that using E20 would void vehicle insurance, describing such claims as “baseless” and “deliberate fear-mongering.” It clarified that insurance coverage remains valid for vehicles using ethanol-blended fuel and that any minor parts replacement required in older vehicles can be carried out during routine servicing at authorised workshops.

The statement stressed that the E20 roadmap, made public in 2021, allowed over four years for vehicle technology upgrades, supply chain adjustments, and ecosystem readiness. Any move beyond E20 will be taken only after extensive consultations with automakers, feedstock suppliers, oil companies, and ethanol producers. The current policy mandates E20 blending until October 31, 2026, with decisions on higher blending levels to follow after the submission of a detailed Inter-Ministerial Committee report and stakeholder discussions.