'No Decision Taken': Centre Rules Out Raising Ethanol Blending Beyond 20% In Petrol

The Centre on Monday said it has no plans to increase ethanol blending in petrol beyond the current 20 per cent level, amid concerns over possible further increases and criticism that the blend affects fuel efficiency and vehicle performance.

Minister of State for Petroleum and Natural Gas Suresh Gopi told the Rajya Sabha that any future increase in ethanol blending would be considered only after detailed scientific studies and consultations with industry stakeholders.

“So far, no decision has been taken by the government for increasing ethanol blending with petrol beyond 20 per cent,” Gopi said in a written reply to Parliament.

Any move to raise the blending level would come “only after detailed scientific and technical studies and consultations

with all relevant stakeholders, including automobile manufacturers, Oil Marketing Companies and research institutions,” he added.

Govt Defends E20 Fuel Rollout

Gopi said India achieved its 20 per cent ethanol blending target five years ahead of schedule, with average blending rising from around 1.53 per cent in 2013-14 to 20 per cent in the 2025-26 supply year after more than two decades of phased implementation.

He said the ethanol blending programme had saved over Rs 1.97 trillion in foreign exchange since 2014-15, reduced crude oil imports by nearly 316 lakh tonnes, avoided around 952 lakh tonnes of carbon dioxide emissions and generated more than Rs 1.66 lakh crore in additional income for farmers.

The minister said the government had not received any “widespread or substantiated complaints” from vehicle manufacturers, automobile associations or consumers about engine failures, fuel pump issues, corrosion or water contamination linked to E20 fuel.

He said more than 20 crore two-wheelers and over three crore petrol cars, including many vehicles built before E20 certification, had operated on higher ethanol-blended fuel without any verified evidence of widespread engine damage or breakdowns.

‘No Plan To Return To Lower Ethanol Blend’

Gopi said vehicles designed for E10 fuel may experience a marginal 3-5 per cent reduction in fuel efficiency when using E20, while the blended fuel offers higher octane levels and cleaner combustion.

He said manufacturers continue to honour warranties on vehicles using compliant E20 fuel and added that no large-scale service complaints or warranty claims linked to the blend had been reported.

On concerns over food security, Gopi said the ethanol programme uses only surplus grains after meeting requirements under the Public Distribution System, the National Food Security Act and buffer stocks.

He also said the government had diversified ethanol feedstock beyond sugarcane, with maize’s share in ethanol production rising to around 37 per cent in 2025-26 from zero in 2021-22.

Gopi said there was no proposal to provide non-blended or lower-blend petrol at selected outlets, as maintaining separate supply chains would increase costs and weaken the benefits of the ethanol programme.

“There is no proposal to mandate the availability of non-blended or lower-blend petrol at select retail outlets. The Government’s policy is to progressively transition towards cleaner, technologically superior and environmentally sustainable fuels in accordance with the National Policy on Biofuels and the Ethanol Blended Petrol (EBP) Programme,” he said.

(With inputs from agencies)