The Petroleum Ministry has defended E20 ethanol-blended petrol, rejecting “fear-mongering” over mileage loss and insurance issues.
The Ministry of Petroleum and Natural Gas has dismissed what it calls “fear-mongering” over the safety and performance of E20 fuel — a blend of 20% ethanol and 80% petrol — saying claims about drastic mileage loss and insurance troubles are “misplaced” and “creating a false narrative.” It said the ethanol programme delivers better acceleration, improved ride quality, and around 30% lower carbon emissions compared to E10 fuel.
“Ethanol’s higher-octane number makes ethanol-blended fuels a valuable alternative for higher-octane requirements that is crucial for modern high-compression engines,” the ministry noted, adding that ethanol scores about 108.5 on octane value compared to petrol’s 84.4.
According to the ministry, E20-compatible vehicles show “better acceleration which is a very important factor in city driving conditions.” Ethanol’s higher heat of vaporisation, it explained, “reduces intake manifold temperatures, increasing air-fuel mixture density and boosting volumetric efficiency.”
Regular petrol in India, earlier sold with a Research Octane Number (RON) of 88, now meets BS-VI norms at RON 91 — and with E20 blending, the RON has improved to 95, offering “better anti-knocking properties and performance.”
Ministry Dismisses Insurance Fears
On insurance concerns circulating online, the ministry said these were “totally baseless.” “Some seek to derail it by fomenting fear and confusion in the minds of car owners… creating a false narrative that insurance companies will not cover car damage due to use of E20 fuels. This fear mongering is totally baseless and has been clarified by an insurance company whose tweet screenshot was deliberately misinterpreted to create fear and confusion. Usage of E20 fuel has no impact on the validity of insurance of vehicles in India,” it stated.
The government also countered arguments that ethanol’s lower energy density — 29.7 MJ/kg compared to petrol’s 46.4 MJ/kg — would cause a “drastic” fall in fuel efficiency. “Vehicle mileage is influenced by a variety of factors beyond just fuel type. These include driving habits, maintenance practices… tyre pressure and alignment, and even air conditioning load,” it said. For vehicles designed for E20, “the question of any drop in fuel efficiency… does not arise,” with some models E20-compatible since 2009.
A Lot To Gain From E20 Fuel: Ministry
Highlighting economic and environmental gains, the ministry said the 20% blending target is expected to generate Rs 40,000 crore for farmers this year and save about Rs 43,000 crore in foreign exchange. “More income to farmers has… helped decisively tackle the challenge of suicides by farmers,” it added, citing a NITI Aayog study that found greenhouse gas emissions from sugarcane and maize-based ethanol to be 65% and 50% lower than petrol’s, respectively. The programme has also “eliminated sugarcane arrears” and boosted maize cultivation.
While some argue ethanol-blended petrol should be cheaper, the ministry said procurement prices have risen since 2020–21. Ethanol now costs on average Rs 71.32 per litre, with maize-based ethanol at Rs 71.86. C-heavy molasses-based ethanol has gone from Rs 46.66 in 2021–22 to Rs 57.97 in 2024–25. Even though ethanol is now costlier than refined petrol, oil companies have not reduced blending as the scheme supports energy security, rural incomes, and climate goals.
E20 Part Of Centre’s ‘Bridge Fuels’ Strategy
Calling ethanol part of India’s “bridge fuels” strategy alongside natural gas, the ministry warned that returning to unblended petrol (E0) would reverse pollution and energy transition gains. It said automobile manufacturers, in coordination with SIAM, are assisting vehicle owners in optimising performance with E20 fuel. “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,” it added.