Govt admits lower mileage in ethanol-blended fuel
The Ministry confirmed that ethanol has a lower energy density than petrol, which can cause a slight decrease in mileage. Four-wheelers designed for E10 and calibrated for E20 may experience a 1–2% drop in mileage, while other vehicles may see a reduction of 3–6%
While the government's claim of up to 6% reduction in mileage on older vehicles suggests a very limited impact, consumers and some experts believe the impact on mileage to be a little higher.
'By its chemical composition, ethanol has lower energy per unit volume than petrol. This results in reduced fuel efficiency from any ethanol-blended petrol when compared to unadulterated petrol. While our internal estimate shows that E20 petrol gives 5-7% lower mileage than unadulterated petrol, primarily in vehicles manufactured before 2023, consumer feedback suggests the impact to be in double digits in real-world driving conditions,' said the head technical officer of a leading car company on the condition of anonymity.
He advocated a discount for consumers on blended petrol given that ethanol is sourced locally and is much cheaper than crude. He said that this may compensate for the increased running costs.
The administered ex-mill price of ethanol for blending purpose has been fixed at Rs 57.97 per litre. A GST of 5% levied on ethanol for blending with petrol, taking the per litre price to Rs 61. Petrol is priced around Rs 95 per lite (in Delhi).

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