E20 petrol may cut mileage by 3-5% in some vehicles, but benefits outweigh impact: Oil Ministry

The Centre on Friday acknowledged that petrol blended with 20% ethanol (E20) can reduce fuel economy by 3-5% in some vehicles, but said the impact is outweighed by benefits such as better engine performance, lower emissions and reduced dependence on imported crude oil.

In a detailed FAQ issued to counter criticism of the Ethanol Blended Petrol (EBP) Programme, the Ministry of Petroleum and Natural Gas said E20 is a "cleaner, higher-quality and more efficient fuel" than E10 or conventional petrol. It added that the nationwide rollout came after years of scientific testing, consultations with automobile manufacturers and expansion of domestic ethanol production.

Also Read: E20 costs more at current crude prices, but saves forex, boosts farmers' income, reduce oil dependence: Govt


The ministry also pushed back against claims that India had rushed the transition to E20. It said the country's ethanol blending programme began with pilot projects in 2001, with 5% blending introduced in parts of the country by 2006. While blending remained at around 1.5% until 2014, production accelerated after the National Policy on Biofuels was introduced in 2018 and the government expanded the range of feedstocks beyond sugarcane.

India achieved 10% ethanol blending in 2022 — ahead of target — and reached 20% blending during the 2025-26 ethanol supply year after investments in ethanol production, storage and logistics, the ministry said.

Addressing concerns over vehicle compatibility, the ministry said E20 underwent extensive testing for engine durability, fuel systems, corrosion resistance, drivability, emissions and material compatibility before being rolled out nationwide.

It also cited feedback from automakers, including Maruti Suzuki and Hero MotoCorp, saying they had not reported E20-related corrosion, abnormal wear or reduced component life in vehicles operating under real-world conditions.

The ministry also ruled out selling multiple grades of petrol — such as pure petrol, E10 and E20 — at fuel stations, saying maintaining parallel nationwide supply chains would increase logistics costs and complicate fuel distribution across India's network of more than one lakh retail outlets.

On pricing, the ministry clarified that E20 is not necessarily cheaper than conventional petrol because ethanol procurement prices are fixed at remunerative levels to support farmers. When international crude prices are low, ethanol can even cost more than petrol, it said.

The programme is aimed at reducing India's dependence on imported crude, improving energy security and insulating the economy from global oil price volatility, rather than lowering prices at the pump, the ministry added.

According to the ministry, the ethanol blending programme has saved more than Rs 1.97 lakh crore in foreign exchange since the 2014-15 ethanol supply year, displaced nearly 316 lakh tonnes of crude oil imports, reduced around 952 lakh tonnes of carbon dioxide emissions and transferred over Rs 1.66 lakh crore to farmers.

The ministry urged consumers not to be influenced by misinformation around E20, saying the fuel has been validated by vehicle manufacturers, testing agencies, oil marketing companies and regulators before its nationwide adoption.

(With inputs from PTI)