E20 petrol is safe, says govt, amid engine damage, mileage concerns
In a statement, the Union ministry of petroleum and natural gas said that vehicle owners do not find any issue related to drivability, metal compatibility and plastic compatibility while using E20 petrol.
The ministry also rejected suggestions that E20 causes a 'drastic' reduction in fuel efficiency as "misplaced".
"The use of E20 gives better acceleration, better ride quality and most importantly, lowered carbon emissions by approximately 30% as compared to E10 fuel. Ethanol's higher-octane number (108.5 compared to petrol's 84.4) makes Ethanol-blended fuels a valuable alternative for higher-octane requirements that is crucial for modern high-compression engines. Vehicles tuned for E20 deliver better acceleration, which is a very important factor in city driving conditions," the ministry said.
Citing Brazil's experience with ethanol-blended fuel, it said that the south American nation has been successfully running on E27 for years with zero issues. The same automakers such as Toyota, Honda, Hyundai among others produce vehicles there too, the ministry said, adding that safety standards for E20 are well established through Bureau of Indian Standards specifications and Automotive Industry Standards.
"In most parameters including drivability, startability, metal compatibility, plastic compatibility, there are no issues. Only in case of certain older vehicles, some rubber parts and gaskets may require replacement earlier than in case non-blended fuel was used. This replacement is inexpensive and can be easily managed during routine servicing. It may need to be done once in the lifetime of vehicle and is a simple process to be carried out at any authorized workshop," it said.
Users have also complained, citing a NITI Aayog report, that ethanol-blended petrol should be cheaper than non-blended fuel, and that this cost advantage has not been passed on to the customers.
The ministry said that in 2020-21, when the report of NITI Aayog was prepared, ethanol was cheaper than petrol. Over time, procurement price of ethanol has increased and now the weighted average price of ethanol is higher than the cost of refined petrol, the ministry said.
"Currently, the average procurement cost of ethanol for Ethanol Supply Year 2024-25, as on 31.07.2025, is ₹ 71.32 per litre, inclusive of transportation and GST. For producing E20, OMCs (oil marketing companies) blend 20% of this procured ethanol with Motor Spirit (MS). Price of C-heavy molasses-based ethanol increased from ₹ 46.66 (ESY 2021-22) to ₹ 57.97 (ESY 2024-25)," the ministry said. "Price of Maize-based ethanol increased from ₹ 52.92 to ₹ 71.86 over the same period. Despite the increase in price of ethanol in comparison to petrol, the oil companies have not gone back on the ethanol blending mandate because the programme delivers on energy security, boosts farmers' incomes and environmental sustainability," it added.
Describing the concerns as "totally baseless", the ministry said that usage of E20 fuel has no impact on the validity of insurance of vehicles in India.
Automobile manufacturers continue to engage with vehicle owners to provide them any support that may be warranted to ensure optimum performance of vehicles, the ministry said. "For a vehicle owner, who believes that his/her vehicle may require further tuning or parts replacement, the entire network of authorized service stations are available to respond to such requests."
Regarding moving beyond 20% ethanol blending, the ministry said that it would require careful calibration, for which extensive consultation are underway. This process has involved the same vehicle manufacturers that are already in Brazil as well as other manufacturers, entities involved in supply of feedstocks, R&D agencies, oil companies and ethanol producers. This process is yet to reach conclusion, it said.
As per the current plan, the government is committed to using E20 petrol till October 2026.
"Decisions for beyond 31.10.2026 will involve submission of the Report of the Inter Ministerial Committee, evaluation of its recommendations, stakeholder consultations and a considered decision of the government in this regard. That decision is yet to be taken," it said.
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