Context

• As India pushes ahead with its ethanol-blended petrol programme—a key measure to cut emissions and reliance on energy imports, apprehensions have been raised particularly by owners of older vehicles. 

They fear ethanol-blended petrol may

• Lower fuel economy  
• Damage the engine  
• Reduce vehicle lifespan  
• Lead to expensive repairs

Response By the Government

• The Ministry of Petroleum and Natural Gas (MoPNG) has dismissed most concerns as: 
• Largely unfounded”(groundless) 
• Not backed by scientific evidence or expert analysis.

The government stated

• Ethanol blending is technically sound  
• It is a forward-looking, environmentally responsible measure.

Ethanol Blending and its Policy Context

• Ethanol is an alcohol-based biofuel typically derived from sugarcane, maize, or other biomass sources. 
• It’s blending with petrol reduces carbon emissions and helps India reduce dependency on imported fossil fuels. 
• The government’s Ethanol Blended Petrol (EBP) Programme, launched in 2003 and accelerated over the past decade, first achieved a 10% ethanol blending (E10) milestone in 2022.
• In 2025, the E20 rollout was declared complete nationwide. 
• The achievement aligns with India’s broader renewable energy and energy security ambitions under the National Bio-Energy Programme.

Concerns

Vehicle Compatibility Issues

• E20 fuel (20% ethanol + 80% petrol) was achieved in 2024, 5 years ahead of the 2030 target.
• Newer cars (post-April 2023) are built to handle E20. 
• Older cars may not be tuned for E20, leading to:
• Potential engine corrosion
• Concerns in two-wheelers due to material compatibility.

Impact on Fuel Efficiency

• One of the most debated impacts of ethanol blending is the drop in mileage. 
• Ethanol contains about 30% less energy per litre than petrol. This energy deficit translates into increased fuel consumption per kilometre driven.
• Central Govt’s View: The Ministry of Petroleum and Natural Gas (MoPNG) has clarified that the mileage loss is “marginal”, around 1-2% for E10-designed vehicles calibrated for E20 and 3-6% for others. With proper engine tuning, the Ministry says efficiency losses can be minimised.
• Expert Opinion: Independent automotive experts, however, estimate that real-world mileage loss could be as high as 6-7%, particularly for vehicles not optimised for E20. This would mean more frequent refuelling and higher running costs for users.

Response From Industry

• Major automobile manufacturers have responded by:
• Hero MotoCorp stated that vehicles manufactured before April 2023 may require engine modifications and replacement of rubber components to safely run on E20.
• TVS Motor Company acknowledges that ethanol’s corrosive nature requires re-engineered components to prevent premature wear and compatibility issues..

Support Measured by Government

• Interest Subvention Scheme (2018) to enhance production capacity. Š 
• GST on ethanol reduced from 18% to 5%. 
• Industries (Development and Regulation) or IDR Act amended (2016) to clarify CentreState roles in ethanol supply. 
• Maize approved as a feedstock by NBCC(National Biofuels Coordination Committee) in 2020.  
• National Policy on Biofuels, notified in 2018, aims to promote the production and use of biofuels to reduce reliance on fossil fuels, enhance energy security, and mitigate climate change.