E20 fuel: Will ethanol-mixed petrol impact mileage and vehicle life? Govt issues detailed response

Referring to arguments that 20% ethanol-blended petrol (E20) causes a drastic reduction in a vehicle's fuel efficiency as "misplaced", the Union government said that it not only provides better acceleration but also lowers carbon emissions.

The Ministry of Petroleum and Natural Gas has issued a detailed clarification addressing public concerns over the impact of E20 on vehicle mileage and lifespan, among others.

According to an official statement by the ministry, ethanol blending is a core part of India's energy transition strategy and aligns with the country's commitment to achieving net zero emissions by 2070. Studies by NITI Aayog indicate that greenhouse gas emissions from sugarcane-based and maize-based ethanol are significantly lower than those from petrol, it said.

Economic benefits and reduced emissions

The ministry said that ethanol blending between 2014–15 and July 2025 saved over Rs 1.44 lakh crore in foreign exchange, replaced 245 lakh metric tonnes of crude oil and reduced carbon dioxide emissions by about 736 lakh metric tonnes, which is equivalent to planting 30 crore trees. At 20% blending, annual payments to farmers are projected at Rs 40,000 crore, with foreign exchange savings of Rs 43,000 crore.

Ethanol blending has strengthened rural incomes, cleared sugarcane payment arrears and improved maize cultivation viability, it added. The programme redirects funds previously spent on crude oil imports to domestic farmers.

Mileage and performance concerns addressed

The government noted that concerns about reduced fuel efficiency were anticipated and studied by an inter-ministerial committee, with research support from Indian Oil Corporation Ltd (IOCL), Automotive Research Association of India (ARAI) and Society of Indian Automobile Manufacturers (SIAM). For vehicles designed for E20, performance benefits include better acceleration, improved ride quality and a 30% reduction in carbon emissions compared to E10.

Ethanol's higher octane rating (108.5) compared to petrol (84.4) enhances anti-knock properties, benefiting high-compression engines. Tests show that any drop in mileage for E10-compatible vehicles is marginal, and many vehicles have been E20-ready since 2009.

Vehicle compatibility and maintenance

According to the ministry, E20 meets established BIS and automotive industry standards for drivability, startability and material compatibility. In some older vehicles, rubber parts or gaskets may need earlier replacement, but this is a one-time, low-cost maintenance task.

International experience, such as Brazil's use of E27 fuel, demonstrates that automakers can operate successfully with higher ethanol blends. Manufacturers in India remain engaged with customers to ensure optimal vehicle performance.

Cost factors and insurance validity

The ministry clarified that ethanol prices have risen in recent years, making them higher than refined petrol costs. Despite this, oil marketing companies continue the blending mandate because of its benefits for energy security, environmental goals and farmer incomes.

It also rejected claims that E20 use could void vehicle insurance, stating such concerns were based on misinterpreted social media posts. Insurance coverage remains unaffected by the use of ethanol-blended petrol.

Future blending plans

The government has committed to maintaining E20 until October 31, 2026. Any move beyond this level will follow consultations with automakers, ethanol producers and other stakeholders, with decisions based on the recommendations of the inter-ministerial committee.