E20 petrol row: Govt answers 9 FAQs on ethanol-blended petrol’s impact on mileage, performance, damage, pricing & more

Seeking to clarify the goals and usage implications of ethanol-blended petrol, the government has come out with a list of Frequently Asked Questions (FAQs). The move comes amid backlash and concerns about the effect of using E20 and other variants of ethanol-blended petrol on vehicles.The government has said that the Ethanol Blended Petrol (EBP) Programme is a major component of India’s energy strategy, designed to strengthen energy security, support the farming community and lower environmental impact by increasing the use of domestically produced renewable fuel.India reached the milestone of 20% ethanol blending in April 2025, five years ahead of the original 2030 target. As a result, the regular petrol sold at fuel stations across the country now contains 20% ethanol.Fuel efficiency continues to be the primary consideration for most buyers when choosing a vehicle. Since the nationwide rollout of E20 fuel, many vehicle owners have complained about a decline in mileage. The issue has not only been widely discussed on social media but has also become a frequent topic of conversation in workplaces and social gatherings.

Ethanol Blended Petrol: What is it?

Let’s take a look at nine FAQs that the government has answered on ethanol-blended petrol:

Ethanol-Blended Petrol: FAQs Answered

Q1. Is ethanol a new fuel that India invented or rushed into?No. Ethanol is not a new fuel. Henry Ford designed the Model T to run on ethanol more than a century ago. Countries like Brazil and the United States have blended ethanol into petrol for decades.India’s own ethanol story also began long before the present government. This has been a journey spanning over two decades. Here is the timeline:

Also Read | How government aims to save billions in forex with ethanol blended petrolQ2. How did India move to 20 percent blending so quickly?In 2021, India required around 500 to 600 crore litres of ethanol annually to achieve 10 percent blending. As fresh investments expanded production capacity, annual ethanol availability approached 1,200 crore litres. With adequate supply in place, advancing to 20 percent blending became a logical and responsible next step. The rise in blending tells its own story of steady, calibrated progress, not a sudden leap:

Brazil built the world’s first large ethanol ecosystem from scratch, which naturally took decades. India had the advantage of learning from that experience. What looks like speed was actually two decades of groundwork, followed by disciplined execution.Q3. Why can’t I simply choose between pure petrol, E10 and E20 at the pump, like I choose premium fuel?India runs over one lakh retail outlets through a vast network of refineries, terminals and pipelines. Stocking three separate base fuels nationwide would multiply costs and complicate quality control at every single outlet.Premium petrol is not a fair comparison. It is a small, additive enhanced product sold at a premium in limited quantities, not a separate nationwide base fuel.There is also the question of what already exists. Public sector banks have financed close to Rs 1 lakh crore a year in ethanol plants, storage and logistics. Reverting to E10 now would strand this investment and hurt the farmers and entrepreneurs who built it in good faith.Q4. Was the automobile industry actually consulted before E20 was rolled out?Yes, from the very start of the transition, not after it. E10 compatibility was discussed with manufacturers as early as 2020-21, and India met its E10 target in June 2022, five months ahead of schedule.For E20, the process was even more thorough. Engine calibration, fuel systems, rubber components, emissions and fuel efficiency were all examined over several rounds of testing before the fuel reached any petrol pump. Manufacturers would not have honoured warranties on E20 if they were not convinced of its safety.Q5. Will E20 reduce my vehicle’s mileage or hurt its performance?Some vehicles may experience a 3 to 5 percent reduction in fuel economy. However, real world mileage depends more on driving habits, tyre pressure, servicing, and air conditioner use than fuel type. Mileage is only one part of the picture.Beyond fuel economy, E20 delivers several performance and environmental advantages:

Q6. My vehicle manual says ‘E10 compatible’. Does that mean E20 is unsafe for my car?No. A vehicle manual reflects the fuel standard that existed when the vehicle was certified. It does not mean the vehicle becomes unsafe the moment fuel standards move forward, after extensive testing and regulatory approval.Before E20 was rolled out, the government set up expert committees involving ARAI, SIAM, automobile manufacturers and oil companies. The 2021 NITI Aayog roadmap specifically addressed the shift from E10 to E20 and gave manufacturers years of advance notice.Q7. Will E20 damage rubber parts, fuel lines or engines in older vehicles?E15-plus blends have already been running across India for over three and a half years. E20 went through extensive lab testing and field validation covering engine durability, corrosion resistance and drivability before it reached the market.The strongest evidence comes from the real world. Maruti Suzuki serviced 2.84 crore cars in FY 2025-26, of which 1.5 crore were older vehicles never certified for E20. No E20 related damage was found. If E20 genuinely damaged rubber hoses, fuel lines or engines, this would have shown up as a wave of warranty claims and complaints. That wave never happened.Additionally, India’s ethanol supply chain is also tightly regulated. Ethanol and blended petrol must meet strict BIS specifications, checked at every stage from distillery to depot to retail pump. Chief Secretaries of all states have been asked to enforce zero tolerance against adulteration.Q8. Ethanol should be a cheaper fuel. So why isn’t E20 priced lower than pure petrol?The Government ensures that farmers receive a fair price for the ethanol supplied under the programme. For example, maize based ethanol is procured at around Rs 71.86 per litre, even before GST, transport, and storage costs are added.When global crude oil prices are around USD 70 per barrel, producing E20 can cost as much as, or even more than, pure petrol. Ethanol becomes the cheaper option only when crude prices rise sharply, typically to USD 120 to 130 per barrel or higher.Even when E20 is priced similarly to pure petrol, consumers still benefit. Nearly 20 percent of every litre of petrol sold in India is now domestically produced ethanol. Unlike crude oil, ethanol prices are not affected by Brent crude fluctuations, wars, or global shipping disruptions.This means that one fifth of every fuel tank is sourced from a stable domestic supply, helping reduce India’s exposure to global oil price shocks while strengthening energy security.Q9. Has ethanol blending helped keep petrol prices in India more stable than in other countries?Yes. The results are visible in how Indian fuel prices have moved compared to the rest of the world.

Every litre of ethanol blended into petrol means four things. Less crude imported. Less foreign exchange spent. More income for Indian farmers and a more stable pump price for the citizen.The government also citied examples of ethanol blended petrol being used globally:

Canada, Thailand and several European countries have likewise included ethanol blending in their clean fuel strategies.