Ethanol-blended petrol E20: Counting gains

India’s transition to E20, petrol blended with 20% ethanol, is aimed at cutting emissions, enhancing energy security, saving foreign exchange, and boosting farmer income, according to government assurances. These statements come in response to public concerns that E20 use reduces fuel efficiency, accelerates wear and tear, and could result in rejection of insurance claims for non-compliant vehicles.

Ethanol Blending Milestones (OMCs)

• 1.53% – 2014
• 10% – June 2022
• 12.06% – ESY* 2022–23
• 14.60% – ESY 2023–24
• 19.93% – ESY 2024–25^
• 27% Ethanol Norms by Aug: Nitin Gadkari
• *ESY: 1 Nov–31 Oct | ^July 2025

Concerns

• Fears raised about drastic mileage reduction and faster wear of some rubber and gasket parts in older vehicles when using E20.
• Ministry of Petroleum and Natural Gas (MoPNG) admits a marginal decrease (1–2%) in mileage in E10 vehicles and those calibrated for E20, and 3–6% for others.
• However, MoPNG says this can be minimised through improved engine tuning and use of E20-compatible materials.
• Post-April 2023 vehicles are E20-compliant, MoPNG quotes SIAM.
• (Inexpensive) replacement of some rubber parts/gaskets advised in certain older vehicles after 20–30K km run, says ministry.
• Argument raised that ethanol-blended fuel should be sold cheaper because of its lower calorific value; however, MoPNG says current weighted average ethanol procurement price (Rs 71.32/L as of July) is now higher than petrol.
• Fears of insurance cover not valid, says ministry.

Benefits

From ESY 2014–15 to ESY 2024–25 (July):

• Crude oil substitution: 245 lakh metric tonnes
• Foreign exchange saved: Rs 1,44,087 crore
• CO2 emission reduction: 736 lakh metric tonnes (equivalent to planting 30 crore trees)
• GHG emissions: Sugarcane and maize-based ethanol emit up to 65% and 50% less GHG than petrol, respectively.
• Lower carbon emissions: ~30% vs E10 fuel.
• Farmer income: E20 programme expected to pay farmers Rs 40,000 crore in 2025 alone.
• Higher octane ethanol: E20’s RON is 108.5 vs petrol’s 84.4.

Better Acceleration

RON (Research Octane Number) 95 with blending of E20, resulting in better anti-knocking properties and performance.
Economic impact: Large forex savings, rural income improvements, elimination of sugarcane arrears, support for maize cultivation.

The Brazil Template

• Brazil has had E27 ethanol blend in place for years, with no significant issues reported.
• By 2011, 83.1% of new cars sold in Brazil used flex-fuel technology, enabling engines to run on any mix of ethanol or petrol.
• Toyota, Honda, and Hyundai produce vehicles designed for ethanol blends.
• Brazilian regulators recently approved an increase in ethanol and biodiesel blending into fossil fuels, effective 1 August.
• Brazil’s CNPE (National Energy Policy Council) to increase ethanol–petrol blending rates to 30% (E30).
• Brazil is the largest producer and user of ethanol from sugarcane, and the biggest ethanol exporter in the world.

However, Brazil’s ethanol production programme Proálcool (launched in 1975 and ended in 1990) faced problems. Risks include:

• Cheaper oil prices
• Rise in ethanol procurement prices
• Diversion of sugarcane to making sugar for exports