Centre Rules Out Return to Pure Petrol as E20 Saves Rs 1.97 Lakh Crore in Oil Imports, Says No Widespread Vehicle Damage

   

SRINAGAR: The Union Government on Monday ruled out any return to pure petrol (E0) or lower ethanol blends (E10), saying extensive scientific studies and more than two years of nationwide experience have found no evidence of widespread vehicle damage from E20 fuel, while the ethanol blending programme has saved India Rs 1.97 lakh crore in foreign exchange, reduced crude oil imports and significantly cut carbon emissions.

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The Ministry of Petroleum and Natural Gas informed the Rajya Sabha that there is no proposal either to restore nationwide supplies of E0/E10 petrol or to increase ethanol blending beyond 20 per cent at present. It said the transition to E20 has been scientifically validated and supported by automobile manufacturers, making a reversal unnecessary.

Responding to separate questions on the impact of E20 fuel, the Ministry said the Government has not received any widespread or substantiated complaints regarding vehicle performance after the introduction of E20 petrol. Although certain concerns surfaced in media reports and on social media, these were scientifically examined and did not establish any widespread adverse impact attributable to ethanol-blended fuel.

The Ministry said no state-wise record of complaints is maintained, as no widespread E20-related vehicle performance issue has been established.

According to the Government, more than 20 crore two-wheelers and over three crore petrol cars have been operating on E15 and E20 fuel blends for over two-and-a-half years without any verified evidence of widespread engine failure linked to ethanol blending.

The Ministry said one of the country’s largest passenger vehicle manufacturers serviced 2.84 crore vehicles during 2025-26, including around 1.5 crore vehicles that were not originally certified for E20, and found no evidence of E20-related corrosion, abnormal wear or reduction in component life. Similar findings have been reported by a leading two-wheeler manufacturer, while automobile companies continue to honour warranty claims for vehicles using specification-compliant E20 fuel.

The Government said the ethanol blending programme was implemented through a phased, calibrated and scientifically validated process after consultation with NITI Aayog, the Ministry of Petroleum and Natural Gas, Oil Marketing Companies, the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM), the Indian Institute of Petroleum (IIP), Dehradun, and other technical institutions.

Before the nationwide rollout of E20, extensive laboratory studies, durability trials and field validation were carried out covering engine durability, drivability, emissions, corrosion resistance, fuel-system compatibility, material compatibility and overall vehicle performance.

The Ministry said an Inter-Ministerial Committee constituted under NITI Aayog also specifically examined the compatibility of older vehicles with E20 fuel. Studies conducted by Indian Oil Corporation (IOCL), ARAI, IIP and SIAM concluded that even legacy vehicles did not show significant deterioration in drivability, startability, metal compatibility, plastic compatibility or abnormal engine wear when operated on specification-compliant E20 fuel.

The Government acknowledged that some older vehicles originally designed for E10 petrol may experience a marginal reduction in fuel economy of around 3 to 5 per cent, but said mileage is influenced by several factors including driving conditions, maintenance, tyre pressure and driving habits. It added that E20 provides higher octane value, cleaner combustion, better anti-knock properties and improved engine performance.

The Ministry highlighted the broader impact of the Ethanol Blended Petrol (EBP) Programme, stating that it has saved over Rs 1.97 lakh crore in foreign exchange, substituted nearly 316 lakh metric tonnes of crude oil, reduced approximately 952 lakh metric tonnes of carbon dioxide emissions, and transferred more than Rs 1.66 lakh crore to farmers through ethanol procurement.

On future policy, the Government said Oil Marketing Companies have been directed to supply petrol containing up to 20 per cent ethanol across all states and Union Territories in accordance with Bureau of Indian Standards specifications. It also noted that from April 1, 2026, E20 petrol with a minimum Research Octane Number (RON) of 95 has been notified under the relevant statutory provisions.

The Ministry said maintaining parallel nationwide supply chains for E0, E10 and E20 fuels across more than one lakh retail outlets would substantially increase logistics, inventory and handling costs. It maintained that the policy objective is to transition towards cleaner, more efficient and environmentally sustainable fuels in line with the National Policy on Biofuels, India’s energy security goals and emission reduction commitments.

At the same time, the Government clarified that no decision has been taken to increase ethanol blending beyond 20 per cent or to introduce ethanol blending in diesel for commercial use. It said any future decision would depend on scientific evaluation, vehicle compatibility studies, stakeholder consultations and adequate domestic ethanol production.

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