Oil Ministry Defends E20 Fuel, Says 3–5% Mileage Dip Offset by Bigger Benefits

The Ministry of Petroleum and Natural Gas on Friday acknowledged that E20 petrol , which contains 20 per cent ethanol , may reduce fuel economy by 3–5 per cent in some vehicles but maintained that the benefits of the fuel significantly outweigh the marginal loss in mileage.

In a detailed question-and-answer document issued to address criticism of the Ethanol Blended Petrol (EBP) Programme , the ministry described E20 as a cleaner, higher-quality and more efficient fuel than conventional petrol. It highlighted advantages such as a higher octane rating , improved anti-knock characteristics, smoother acceleration, cleaner engine operation and lower lifecycle carbon emissions .

The ministry rejected claims that the programme had been implemented hastily, noting that India's ethanol blending initiative began with pilot projects in 2001 , while the National Policy on Biofuels, 2018 accelerated production by expanding ethanol feedstocks beyond sugarcane. India achieved 10 per cent ethanol blending in 2022 and reached 20 per cent blending during the 2025-26 ethanol supply year , supported by investments in production, storage and logistics.

Addressing concerns over vehicle compatibility, the ministry said E20 underwent extensive testing for engine durability, corrosion resistance, drivability and emissions before nationwide rollout. It added that automobile manufacturers, including Maruti Suzuki and Hero MotoCorp , have not reported E20-related corrosion or abnormal component wear in real-world conditions.

The ministry also ruled out offering multiple fuel grades such as pure petrol, E10 and E20, arguing that parallel supply chains would raise logistics costs across India's network of over 100,000 fuel stations .

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