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As per the government's green fuel policy, ethanol blend in petrol is in trend now and the government is pushing this policy aggressively. Earlier, the ethanol blend was 10 per cent, and now the government is moving towards a 20 per cent blend.

Despite the environmentally friendly move by the government, automakers and consumers are not sure about it whether this is good for the vehicle or not, as the present vehicles are not very compatible with it. 

According to a nationwide survey by LocalCircles, a majority of petrol vehicle owners are opposing this initiative as they feel it will decrease the mileage and increase the running costs.

However, the Ministry of Petroleum and Natural Gas has dismissed recent claims circulating on social media that E20 petrol causes a drastic drop in fuel efficiency.

In a detailed statement, the ministry said such allegations are factually incorrect and not backed by scientific analysis or expert opinion.

The ministry clarified that while ethanol has a lower energy density than petrol, the impact on fuel efficiency is only marginal.

In a social media post on X, the ministry stated that "the allegation that E20 leads to drastic drop in fuel efficiency is factually incorrect".Some articles/ reports in the media have raised concerns about the potential negative impact of 20% ethanol blending (E20) in petrol, particularly with regard to older vehicles and customer experience. These concerns, however, are largely unfounded and not supported by…

— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) August 4, 2025

The ministry stated that for vehicles designed for E10 and calibrated for E20, mileage may drop by just 1-2 per cent, while in other vehicles, it could be around 3-6 per cent.

This drop can be further reduced with better engine tuning and use of E20-compatible parts, which leading automobile manufacturers have already adopted.

The Society of Indian Automobile Manufacturers (SIAM) has confirmed that E20-compliant vehicles with upgraded components have been available since April 2023.

On the issue of material corrosion, the ministry stated that safety standards for E20 are well-established through BIS specifications and Automotive Industry Standards.

In some older vehicles, minor replacements such as rubber parts or gaskets may be needed after 20,000 to 30,000 kms, but these are inexpensive and usually done during regular servicing.

Addressing environmental concerns, the ministry highlighted that ethanol is a renewable fuel that helps reduce CO2 emissions. India's ethanol is now produced not only from sugarcane but also from surplus rice, maize, damaged foodgrains, and agricultural waste, especially under the push for second-generation (2G) biofuels.

A study by NITI Aayog found that ethanol made from sugarcane and maize emits 65 per cent and 50 per cent less greenhouse gases, respectively, compared to petrol.

The ministry also emphasized the benefits of ethanol in improving vehicle performance. Ethanol has a higher octane number (~108.5) than petrol (~84.4), which helps improve engine performance and ride quality in modern vehicles.

The ministry stated "Vehicles tuned for E20 (having increased RON) deliver even higher performance".

Additionally, its higher heat of vaporisation lowers the intake manifold temperature, increasing air-fuel mixture density and engine efficiency.

The government noted that ethanol blending also boosts energy security by reducing crude oil imports. Since 2014-15, India has saved over Rs. 1.40 lakh crore in foreign exchange due to ethanol substitution. It has also led to payments of over Rs. 1.20 lakh crore to farmers, supporting rural incomes and employment. Ethanol blending has helped reduce carbon dioxide emissions by 700 lakh tonnes.

The ministry concluded that the concerns about E20 harming vehicles or causing consumer hardship are not based on facts.

Also Read: Ethanol blending in petrol to be raised to 27% as India meets target 6 years in advance: Sources

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