E20 fuel is a new type of petrol that contains 20 percent ethanol and 80 percent regular petrol. The Indian government is pushing this fuel as part of its ethanol blending programme to reduce dependence
on imported petrol and promote cleaner energy. While the move aims to help the environment and support farmers, many vehicle owners are unsure how it might affect their cars and costs.
Does E20 fuel make petrol cheaper?
Surprisingly, E20 hasn’t made petrol cheaper for customers. Earlier, ethanol used to be cheaper than petrol. But now, the average cost of ethanol is actually higher. So even though E20 uses less petrol, the overall price at the pump hasn’t gone down.
How does it affect your vehicle’s performance?
Ethanol has a higher octane number, which can lead to better engine performance in newer cars made for E20. Some people might notice more torque or smoother driving if the engine is tuned correctly. But ethanol also has lower energy content than petrol, so fuel efficiency may drop slightly.
Will mileage be affected?
Yes, mileage could go down. Government tests say that in newer, E20-compatible vehicles, fuel efficiency drops by 1–2 percent. But older cars, specially those made for E10 or less, may lose 3–6 percent mileage. In day-to-day use, you may find yourself filling up more often, specially if your vehicle is older.
#Watch | In 2014, ethanol blending was just 1.5%. As of Jan 2025, it has reached 19.6%, leading to lower pollution, higher farmer incomes, and ₹85,000 crore in forex savings.
India is set to achieve its 2030 target 5 years early! pic.twitter.com/yttNnJRRIN
Will maintenance costs go up?
Yes, older vehicles may need more frequent servicing. Fuel system cleaning and injector maintenance could become more common. Additives might help a little, but they won’t fix the root problem of long-term compatibility.
Is your car still under warranty?
Some carmakers are still deciding how to handle this. A few have said they might modify older models for E20 use, but that could cost extra. Others haven't made any promises yet.
What’s the bigger benefit for the country?
Since 2014–15, India has saved over Rs 1.40 lakh crore in foreign exchange by using more ethanol. Farmers have earned Rs 1.20 lakh crore by selling crops for ethanol, which helps rural jobs and income.
