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E27 Fuel Explained: What 27% Ethanol In Petrol Means For Your Car, Mileage & Wallet
E27 Fuel Explained: What 27% Ethanol In Petrol Means For Your Car, Mileage & Wallet

Time of India

time5 days ago

  • Automotive
  • Time of India

E27 Fuel Explained: What 27% Ethanol In Petrol Means For Your Car, Mileage & Wallet

India's move to increase ethanol blending in petrol from 20% to 27% (E27) brings environmental and economic benefits, but also raises key concerns for consumers. Ethanol is made from crops like sugarcane and maize—so diverting more for fuel could reduce food supply and push up prices. At the same time, ethanol has lower energy content than petrol, which can reduce mileage by 5–10%, leading to higher fuel costs over time. Most existing vehicles aren't fully compatible with higher ethanol blends, raising risks of engine wear and corrosion. While the policy supports sustainability, it may strain consumer wallets in the short term. Watch the video to understand how E27 could impact your fuel costs, your car, and your daily drive.#e27india #ethanolblending #fuelcost #carcare #indiangas #consumerconcerns #greenfuel #sustainableindia #enginehealth #foodsecurity #toi #toibharat Read More

Can a higher ethanol blend negatively impact petrol prices?
Can a higher ethanol blend negatively impact petrol prices?

Hindustan Times

time6 days ago

  • Automotive
  • Hindustan Times

Can a higher ethanol blend negatively impact petrol prices?

Having achieved its 20% ethanol blending targets five years prior to its deadline, it's safe to say that biofuel is to play a key role in the central government's plan to reduce crude oil dependence. It's a win-win for both the government and the agricultural sector, which can now utilise excess sugar for ethanol production. Ethanol is basically ethyl alcohol that is made from molasses, grains and farm waste. (Representational image/REUTERS) With the exception of Delhi, petrol prices range between ₹100 - ₹104.2 per litre. Earlier this year, the per-litre price of ethanol increased by ₹1.69, bringing the total ex-mill cost of ethanol produced for the purposes of blending with petrol to ₹57.97. Given that ethanol is a little over half the price of petrol, the 20% blend, which was achieved earlier this year, should theoretically be accompanied by a marginal drop in petrol prices. In 2021, a 20% blend was projected to reduce petrol prices by ₹8/litre, according to a report by CNBC TV18. That hasn't turned out to be the case. Also Read | Grain-based ethanol output outpaces sugar; industry seeks higher procurement price In India, retail fuel prices are determined by international crude oil prices and the existing tax structure imposed by states via excise and VAT. While there has been no major fluctuation in VAT in the last couple of years, excise duty did go up in April, although the cost was not passed on to the customers, according to a report by Reuters. However, the benefit of the lower cost of production of ethanol has also not been passed down to the customers. In fact, it has indirectly added to the running cost of a petrol vehicle as ethanol burns much faster than petrol and isn't as energy efficient. Translation: lower mileage. You have to buy a lot more blended petrol in order to go the same distance as you would without unblended petrol. The prices also depend on just how the ethanol is produced. According to a report by the Centre of Social and Economic Progress, ethanol derived from B-Heavy Mollases, Sugarcane juice, sugar, sugar syrup, and damaged food grains brings the ex-mill price range up to ₹60 - ₹65.6. Add transportation charges and a 5% flat GST charge per litre, and the weighted average comes down to ₹65.35/litre of ethanol. Theoretically, then, the average price of petrol should be around ₹95/litre, which is only available in Delhi at the moment. Also Read | Cabinet hikes ethanol price to boost fuel-blending programme The report goes on to claim there is enough evidence to suggest that the Ethanol Blend Petrol Programme has played a key role in reducing crude oil imports, saving foreign exchange and generating domestic revenue. However, no cost benefit has been passed down to the customer. With the government working to meet an E27 target ( a 27-30% ethanol blend by 2030) there's no evidence to suggest that the consumer will benefit at all. In fact, as it stands, the move is costing the petrol car consumer due to lower mileage and wear and tear caused by the corrosive nature of ethanol. How do E10 compatible vehicles respond to E20 fuel? All cars sold in India post April 2020 are BSVI compliant which means they've been modified to accommodate a higher ethanol blend without sustaining any corrosive damage that ethanol causes. This means the cars must feature modifications such as ethanol-resistant fuel system components, hoses and a recalibration of the ECU. However, there's a catch. All cars in India that were purchased prior to April 2023 are only E10 compliant. That is before we take into account the multitude of vehicles purchased before 2020, that aren't ethanol-compatible at all. But even running E20 fuel in a vehicle designed for E10 fuel can hamper the mileage, fuel system damage (which can potentially lead to fuel leakage, reduced engine performance and even a phenomenon known as 'engine knocking' – abnormal combustion where fuel ignites prematurely, causing metallic pinging sounds and potential damage to engine components. In extremely cold temperatures, this can also lead to starting troubles.

Govt to come up with norms for 27 pc ethanol blending in petrol by Aug end
Govt to come up with norms for 27 pc ethanol blending in petrol by Aug end

The Print

time24-07-2025

  • Automotive
  • The Print

Govt to come up with norms for 27 pc ethanol blending in petrol by Aug end

'India has already achieved its target of 20 per cent ethanol blending. In Brazil, the ethanol blend in gasoline is 27 per cent,' Gadari said while addressing an event here. Prime Minister Narendra Modi had launched the higher 20 per cent ethanol-blended petrol in 2023. New Delhi, Jul 24 (PTI) The government will come up with norms for 27 per cent ethanol blending in petrol by the end of August, Union Minister Nitin Gadkari said on Thursday. Currently, automobile engines can run on E20 with minor modifications in engines for corrosion, etc. 'Presently, India does not have standard norms for the E27 fuel…the norms for E27 will be finalised before August end,' the road transport and highways minister said. India is 85 per cent dependent on imports for meeting its oil needs. 'We import fossil fuels worth Rs 22 lakh crore, which is also causing pollution… so diversifying agriculture towards the energy and power sector is the need of the hour,' he said. Gadkari said 11 automobile companies have manufactured vehicles which run on flex-fuel engines. 'India is food surplus and there is a need to protect the interests of farmers,' he added. Use of ethanol, extracted from sugarcane as well as broken rice and other agri produce, will help India — the world's third largest oil consumer — bring down its reliance on overseas shipments. The target of achieving an average 10 per cent blending was achieved in June 2022, much ahead of the target date of November 2022. PTI BKS BKS MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

Govt to finalise 27% ethanol blending norms by August: Nitin Gadkari
Govt to finalise 27% ethanol blending norms by August: Nitin Gadkari

Business Standard

time24-07-2025

  • Business
  • Business Standard

Govt to finalise 27% ethanol blending norms by August: Nitin Gadkari

The Indian government will introduce guidelines for 27 per cent ethanol blending in petrol by the end of August, Union Minister Nitin Gadkari announced on Thursday. In 2023, Prime Minister Narendra Modi launched petrol blended with 20 per cent ethanol. Speaking at an event, Gadkari said, 'India has already achieved its target of 20 per cent ethanol blending. In Brazil, the ethanol blend in gasoline is 27 per cent.' Currently, Indian vehicles can run on E20 petrol with minor changes to the engine to prevent corrosion and other issues. Finalising standards for E27 India relies on imports to meet 85 per cent of its oil requirements. 'We import fossil fuels worth ₹22 lakh crore, which is also causing pollution... so diversifying agriculture towards the energy and power sector is the need of the hour,' he added. Flex-fuel vehicle push Gadkari noted that 11 automobile manufacturers have already developed vehicles with flex-fuel engines. 'India is food surplus and there is a need to protect the interests of farmers,' he said. Ethanol, which can be produced from sugarcane, broken rice and other agricultural products, is expected to help reduce India's dependence on foreign oil. India is currently the world's third-largest oil consumer and imports about 88 per cent of its crude oil requirements, making it vulnerable to geopolitical vagaries that can impact crude prices. India achieved its earlier goal of 10 per cent ethanol blending in June 2022, well ahead of the original deadline of November 2022. Reducing pollution a shared duty: Gadkari Earlier this month, Gadkari said that reducing pollution from fossil fuel-powered vehicles is a key responsibility shared by all stakeholders. At an event hosted by the National Highways Authority of India (NHAI), Gadkari highlighted the importance of switching to cleaner alternatives. He stated that promoting fuels such as ethanol and carrying out widespread tree plantation campaigns are among the most effective ways to tackle pollution. According to him, the government is actively working on both these fronts. To support environmental sustainability, the minister said the government is also making productive use of waste materials in infrastructure projects. He noted that around 8 million tonnes of waste have been used so far in the construction of roads.

Mint Explainer: Why is India blending more ethanol with petrol?
Mint Explainer: Why is India blending more ethanol with petrol?

Mint

time23-07-2025

  • Automotive
  • Mint

Mint Explainer: Why is India blending more ethanol with petrol?

MUMBAI : India achieved its target of blending 20% ethanol into petrol in March 2025—five years ahead of the 2030 deadline. Now, the government has grown more ambitious: It wants to blend more ethanol into petrol. But why is India using more ethanol-blended petrol like E20? How does it affect our vehicles? Most importantly, can it reduce the harm caused by fossil fuels? Mint explains: Why is India blending ethanol with petrol? Primarily, to reduce our import bill and emissions. In 2003, India started a pilot programme to blend ethanol—a byproduct of sugarcane—into petrol to reduce carbon emissions from the fuel's use. By 2019, the Ethanol Blended Petrol (EBP) Programme was extended to all of India (except the Andaman and Nicobar Islands and Lakshadweep). The ethanol blending helps the country reduce its crude oil imports and bring down its foreign-exchange outflow. Where are we on our ethanol blending programme? As of 2025, all commercially available petrol in India is E20, meaning 20% of it is blended with ethanol. We reached this target five years earlier than the planned 2030 deadline. Now, the government is planning to hike blending targets to 27% by 2030 and sell E27 petrol by 2030, reported The Times of India on 17 July. The ministry of petroleum and natural gas (MoPNG) denied the report, saying it had not made a decision on higher ethanol blending yet. However, in June, the ministry of road transport published a notification proposing changes in the Central Motor Vehicle Rules, 1989, that will allow automakers to manufacture 'flex fuel' vehicles. These can run on E85—petrol containing 85% ethanol. Has ethanol blending delivered on its objectives? Yes, at least according to the government. India's greenhouse gas emissions reduced by 19.2 million tonnes between 2014 and July 2021, showed the latest ministry of petroleum and natural gas estimates. The ministry said the country also saved over ₹26,000 crore in foreign exchange by cutting its reliance on crude oil imports during the period. So, what's the fuss about E20 and higher ethanol-blended petrol? Consumers aren't enthused about buying petrol blended with ethanol for a number of reasons. First, burning ethanol produces less energy than petrol, so E20 and other blends affect car mileage. This means car owners are forced to buy more petrol to travel the same distance. Second, despite blending ethanol with petrol and saving on import costs, the government has not reduced petrol prices; oil marketing companies continue to retail the fuel at above ₹100 per litre in most major cities. Third, engines of older vehicles may not be compatible with E20 and newer blends that the government may introduce next. For customers, ethanol-blended petrol may be reducing the lives of their vehicles with no discernible savings in fuel costs. But isn't it worth the reduced emissions? Perhaps. Environmentalists say there are second- and third-order effects to producing ethanol-blended petrol in India. As farmers grow more sugarcane to convert to ethanol and sell to the government, land and water resources in delicate areas come under pressure, adding to environmental stress. Instead, the government should focus on turning biomass from existing activities—such as wood chips and crop residue—to make more ethanol. In 2021, the Niti Aayog said a 'relatively small" part of ethanol procurement came from non-sugar sources. Besides, vehicle makers will need to invest in upgrading the engines of their newer cars so that they can run on petrol blended with more ethanol. Energy experts say the government must also determine how to promote electric vehicles alongside ethanol-blended fuel-run vehicles. Are carmakers ready for this upgrade? Perhaps. In March, the Society of Indian Automobile Manufacturers told the MoPNG that carmakers could reduce the loss of engine efficiency due to E20 petrol with some modifications in engine hardware and tuning. At any rate, the ministry said that E20 had only a 'marginal reduction" in fuel efficiency of cars made for E10 and calibrated for E20. Manufacturers are getting ready for newer fuel norms. At Bharat Mobility Global Expo 2025, leading carmakers, including Maruti Suzuki, Hyundai, Tata Motors, and Mahindra & Mahindra, showed flex-fuel cars that can run on E85 and higher grades of ethanol-blended petrol.

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