E20 Petrol FAQs: Centre Explains Vehicle Compatibility, Fuel Prices and Future E85 Rollout

Even as complaints over E20 petrol continue to mount, Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday said the government is planning to introduce E85 fuel (85% ethanol and 15% petrol) which would be about 20 rupees cheaper per litre than the standard E20 petrol. He said E85 would be restricted to vehicles specifically designed to use the fuel.

In an interview with a private news channel, Puri said we have not even decided on it and E25 is only being tested now. After the test results are in, the government plans to discuss them with automakers and other stakeholders before taking a call on increasing the ethanol blend above 20%, ANI reported.

The minister's comments come as criticism of E20 petrol continues to grow. The rollout of E20 has not been without controversy. Many motorists say they have noticed lower fuel efficiency after switching to the higher ethanol blend, while others claim maintenance expenses have gone up.

Opposition parties have seized on those complaints. Karnataka Pradesh Congress Committee (KPCC) president B.K. Hariprasad and AAP chief Arvind Kejriwal have argued that consumers should be paying less for fuel if ethanol is cheaper than petrol. They have also questioned whether E20 is affecting vehicles in the long run.

The Centre rejects those claims, maintaining that E20 has been thoroughly tested by the Automotive Research Association of India (ARAI) along with automobile manufacturers and is safe for compatible vehicles.

Here are some of the FAQs issued by the Ministry of Petroleum and Natural Gas on the Ethanol Blended Petrol Programme.

So, Did India speed up ethanol blending?

The simple answer is NO. The Centre has rejected claims that India fast-tracked the rollout of ethanol-blended petrol and informed that the ethanol blending programme has been underway for more than two decades.

According to the government, India's ethanol blending programme began with a pilot project back in 2001. It was later followed by the launch of the Ethanol Blended Petrol Programme in 2004. Initially, E5 fuel was introduced in several states in 2006, however, the policy framework was formally notified in 2013 only.

Government further said that the blending levels had remained around 1.5% until 2014 because domestic ethanol production was limited back then. The turning point then came after the National Policy on Biofuels was introduced in 2018 which expanded ethanol production and encouraged investment.

The Centre said oil marketing companies invited proposals for dedicated ethanol plants in 2021, while NITI Aayog released a roadmap after consulting industry stakeholders. As production capacity increased, India gradually moved from E10 to E20 fuel.

The government argues that the transition was in phases rather than abrupt. However, some critics maintain that while policy planning may have taken years, consumers and owners of older vehicles experienced the shift much more quickly.

Why can't consumers choose between pure petrol, E10 and E20?

The government said offering multiple grades of petrol across the country would be logistically challenging and economically inefficient.

According to the Centre, India has more than one lakh fuel retail outlets, and maintaining separate supply chains for pure petrol, E10 and E20 would increase costs, complicate transportation and make fuel distribution less efficient.

On concerns about older vehicles, the government said automobile manufacturers were consulted before the rollout of E20. It cited feedback from companies including Maruti Suzuki and Hero MotoCorp, which it said had not reported widespread cases of E20-related engine or component damage.

The Centre acknowledged that some vehicles may experience a 3-5% drop in fuel efficiency but argued that E20 offers benefits such as cleaner combustion, lower emissions and reduced dependence on imported crude oil.

The government also noted that nearly ₹1 lakh crore has been invested in ethanol production and related infrastructure, saying a return to lower blending levels would undermine those investments.

While the logistical argument is widely recognised, some automotive experts continue to express caution about the long-term impact of E20 on certain older vehicles.

Why isn't E20 cheaper than regular petrol?

The government said the assumption that ethanol is always cheaper than petrol is not necessarily correct.

It explained that ethanol is purchased from farmers at government-fixed prices, which currently range between about ₹60 and ₹72 per litre depending on the feedstock. At lower global crude oil prices, ethanol can actually cost more than petrol to procure.

According to the Centre, the purpose of ethanol blending is not to reduce retail fuel prices immediately but to improve India's energy security by lowering dependence on imported crude oil.

The government said the programme has helped save around ₹1.97 lakh crore in foreign exchange, reduce crude oil imports, cut carbon emissions and transfer more than ₹1.66 lakh crore to farmers.

The Centre argues that the long-term objective is greater price stability and reduced exposure to fluctuations in international oil markets rather than cheaper petrol at the pump.

Does E20 damage older vehicles?

The government has dismissed concerns that E20 causes widespread damage to older vehicles, saying there is no scientific evidence to support such claims.

According to the Centre, E20 underwent extensive laboratory testing before its rollout, with participation from automobile manufacturers, testing agencies and oil companies. It also said millions of older vehicles have already been using ethanol-blended petrol without any large-scale reports of engine failures or warranty-related issues.

Responding to concerns over vehicle manuals that specify "E10 compatible," the government said those labels reflected the fuel standards in place when the vehicles were certified and should not be interpreted as proof that E20 is unsafe following subsequent testing and regulatory approval.

The Centre advised consumers not to rely on unverified claims circulating on social media, maintaining that E20 is safe, scientifically validated and approved by manufacturers.

However, the issue remains a subject of debate. While there is no evidence of widespread engine failures linked to E20, some experts say older vehicles may experience slightly lower fuel economy, and certain components could be affected over long periods. They recommend that vehicle owners follow the latest guidance issued by their manufacturers.