E20 shift must not leave drivers behind

The messaging around E20 petrol could have been handled better. GoI's consultations with automobile manufacturers, oil refiners and ethanol distillers have been extensive before the country switched over to petrol laced with 20% alcohol. Trials have been conducted on the effects of E20 on cars and motorcycles designed to run on 10% ethanol and sold before 2023. But neither the deliberations nor the results of these experiments were shared adequately with vehicle buyers. This provided scope for misinformation about the effects of E20 on engine health. Since vehicle buyers have no choice over the fuel they fill their tanks with, it became easy to sow doubt among consumers. Neither GoI nor the automobile industry took any pre-emptive action to dispel the lingering suspicion among vehicle owners.

Some complacency may have crept in because vehicles have been running on petrol laced with ethanol since 2023 without any noticeable damage or drop in performance. GoI has accelerated its ethanol programme, and distilling capacity is expanding. Car and motorcycle makers and oil refiners are on board with the new tempo. Consumers have little say in this process, but policymakers will be remiss if they do not bring them up to speed. Since this is an ongoing process, the messaging to buyers needs to be continuous.

Communication gaps can be costly in the world's third-largest automobile market. The delayed explanation of the sort offered last week can still be exploited to spread misinformation about automobile health. India needs to accelerate its fuel-blending plans due to its vulnerability to energy shocks, its rapidly growing automobile market and its climate commitments. Drawing on the experience of other countries does not amount to much because their parameters are vastly different. But the policy must take the people along. Fuel blending has economy-wide implications, and the stakeholder base needs to be widened. A transparent process should serve the purpose.