Govt says no decision on increasing ethanol-blending beyond 20%, programme saved ₹1.97 lakh crore in forex

The Centre on Thursday highlighted the benefits of ethanol-blended petrol (EBP) and clarified that so far, the government has not taken any decision on increasing ethanol-blending beyond 20%.

The government, in a statement, added that the introduction of E85 fuel “does not constitute an increase in the nationwide base ethanol-blending level of petrol”. Notably, E85 fuel contains 85% ethanol and 15% petrol.

“Any future decision regarding higher ethanol blends will be taken only after detailed scientific and technical studies and consultations with all relevant stakeholders, including automobile manufacturers, Oil Marketing Companies (OMCs) and research institutions,” it said.

In a written reply to the Lok Sabha on 23 July, Suresh Gopi, Minister of State (MoS) in the Ministry of Petroleum and Natural Gas, said the EBP programme has saved over ₹1.97 lakh crore in foreign exchange. He added that these savings come through the substitution of around 316 lakh metric tonnes of crude oil. The statement further claimed that the blend has also reduced around 952 lakh metric tonnes of CO2 emissions and transferred over ₹1.66 lakh crore to farmers.

Centre on ethanol-blended petrol: Key highlights

• Average ethanol-blending was around 12% in FY23, increased to nearly 14.6% in FY24, and rose to about 19.2% in FY25. In FY26, the blending percentage rose to 20%, it added.
• As per the statement, India has achieved 20% ethanol-blending five years ahead of the original target.

• Over 20 crore two-wheelers and over 3 crore petrol cars have been operating on these blends “without any verified evidence of widespread engine failure or vehicle breakdown attributable to ethanol blending”, it added.
• As per the release, E85 fuel (containing 85% ethanol and 15% petrol) has been introduced exclusively for use in Flex Fuel Vehicles (FFVs) designed and certified for such fuel (E85) and “does not constitute an increase in the nationwide base ethanol-blending level of petrol”.

Prescribed ethanol-blending percentage over the last three years:

EBP programme through phased and scientific process

According to the release, India's EBP Programme “has been implemented through a phased, scientifically validated and consultative process involving NITI Aayog, automobile manufacturers, OMCs, Automotive Research Association of India (ARAI), Society of Indian Automobile Manufacturers (SIAM), Indian Institute of Petroleum (IIP) and other technical institutions”.

It added that 20% blend has been achieved in five years ahead of the original target, “after more than two decades of phased policy development, stakeholder consultations, scientific evaluation and capacity creation”.

• E15+ blended petrol has been in widespread use for over three-and-a-half years, and E19-E20 fuel for over two-and-a-half years.
• Manufacturer service data confirm that there is no abnormal corrosion, wear or reduction in vehicle life due to E20 fuel.

• Manufacturers continue to honour warranty obligations for vehicles using E20 fuel, providing further confidence in its safety and reliability.
• The government has not received any widespread or substantiated complaints from vehicle manufacturers, automobile associations or consumer organisations regarding drastic reduction in mileage, slow pick-up and rusting of petrol tanks, attributable to E20 fuel.
• The government has, however, taken note of certain concerns raised in media and social media, which have been scientifically examined.
• Extensive laboratory testing and field validation by the Inter-Ministerial Committee under NITI Aayog, IOCL, ARAI, IIP and SIAM confirmed that E20 fuel does not cause abnormal wear and tear or compatibility issues.

• According to SIAM and ARAI, E20 improves acceleration and ride quality while reducing carbon emissions. Ethanol's higher-octane number supports modern high-compression engines and its higher heat of vaporisation improves combustion efficiency.
• Having been scientifically validated and accepted by the automobile industry after extensive testing, there is no proposal to revert to E0/E10 petrol. “The objective of public policy is to move forward with a superior fuel, not return to an inferior standard,” it added.
• Customers can register their grievances through multiple offline and online channels such as complaint/suggestion registers available at all retail outlets, dedicated toll-free customer care numbers, company websites and mobile applications, Customer Relationship Management (CRM) systems, social media platforms, e-mail, and the Centralized Public Grievance Redress and Monitoring System (CPGRAMS).
• All complaints received through these channels are duly investigated and resolved within the stipulated timeframe in accordance with the established procedures of the OMCs.