Why is Brazil at the centre of India's ethanol-blended fuel rollout? Here's what we know
As India expands E20 fuel adoption, Brazil's decades-old ethanol programme has become a key reference point in the debate. While the Centre cites Brazil's success in defending higher ethanol blending, critics have argued otherwise.
As India accelerates the rollout of E20 petrol, comparisons with Brazil, where ethanol has powered vehicles for decades, have become central to the debate over ethanol-blended fuel.
According to a Hindustan Times report, Petroleum and Natural Gas Minister Hardeep Singh Puri last year pointed to Brazil's long-standing use of E27 petrol, a blend containing 27% ethanol, saying the country has not reported engine-related issues because of it. Road Transport and Highways Minister Nitin Gadkari has also cited Brazil's success, noting that the country adopted E100 ethanol fuel years ago.
According to reports, while Rio de Janeiro's ethanol blending model is often cited by policymakers to back New Delhi's adoption, critics have argued that India's agricultural realities, energy needs and environmental challenges make the Brazilian playbook difficult to replicate.
Why is Brazil at the centre of the debate?
Quick answers to key questions
Brazil has a long history of using ethanol-blended fuel, starting in 1973 during an oil crisis, which makes its ethanol policies a reference point for India as it adopts similar alternatives.
In Brazil, consumers can choose between petrol blended with various percentages of ethanol and pure hydrous ethanol, while India's current system only offers E20 without multiple blend options at fuel stations.
Ethanol blending has led to over ₹1.66 lakh crore in direct payments to farmers, promoting better incomes by increasing demand for their produce through higher market opportunities.
India's agricultural conditions, energy needs, and environmental issues make it difficult to adopt Brazil's ethanol model directly, as highlighted by critics of India's E20 rollout.
The government acknowledges a potential 3-5% drop in mileage with E20 but insists that no evidence supports claims of significant engine damage, citing broad support from automobile manufacturers.
According to Hindustan Times, Brazil turned to ethanol back in 1973, when the country faced an oil crisis triggered by Arab oil producers, who embargoed the US and its allies over the Yom Kippur War, thereby highlighting the South American country's dependence on imported crude oil.
Brazil, which has long been the world's largest sugarcane grower, already had the raw material and much of the infrastructure. The country has been growing sugarcane since 1532. Additionally, ethanol as a fuel was not new either, with the first ethanol plant opening in 1927 in Alagoas. By 1929, roughly 500 cars in the country's northeast were running on it.
According to Bloomberg, Brazil first mandated a 5% ethanol blend in petrol in 1931. The blending requirement was temporarily raised to 50 per cent during World War II due to disrupted oil supplies. However, the country's major push towards ethanol began in 1975 with the launch of the National Alcohol Programme, or Pro-Álcool, at a time when low sugar prices and surplus distillation capacity made the initiative economically viable.
By 1979, Rio de Janeiro unveiled the Fiat 147, the world's first mass-produced car to run entirely on pure ethanol. Within six years, roughly 75 per cent of the cars could handle ethanol-blended fuel.
How is Brazil's system different from India's?
According to reports, Brazil follows a different fuel retail model from India. Motorists can choose between petrol blended with around 27% ethanol (E27) and hydrous ethanol (E100). Pricing has often favoured ethanol, with reports indicating that it has typically been sold at prices 25-35% lower than blended petrol, making it an attractive option for consumers.
However, unlike Rio de Janeiro, motorists in New Delhi do not have a choice between multiple ethanol blends at fuel stations.
Centre's stance on E20 rollout
Following India's adoption of E20, a massive debate has erupted, with motorists flagging a dip in their vehicles' mileage and engine parts corroding since the switch.
The debate has also garnered reactions from political leaders, including Karnataka Congress chief BK Hariprasad and Aam Aadmi Party (AAP) convenor Arvind Kejriwal, who have accused the Centre of forcing an "experiment" on drivers who never wanted one.
Defending the nationwide adoption of E20 fuel, Puri said that ethanol-blended fuel was already being used extensively without causing technical issues. He added, "There are 20 crore two-wheelers on the road and 20 lakh four-wheelers using this fuel. The automobile manufacturers, as well as the people who service these vehicles, all say there is no difficulty," Moneycontrol reported.
He further said, "We have been on E20 (blend of 20% ethanol and 80% petrol) since April of last year. From April 2025 to April 2026, it has already been one year, and we are now another five months beyond that."
He questioned the sudden interest in the ethanol-blending fuel programme and said New Delhi had been using E15 (a blend of 15% ethanol and 85% petrol) for the last two to three years.
Rejecting criticism that E20 petrol damages vehicles, Gadkari challenged critics to back the claim with evidence. He said, "There is no case of any car facing issues due to E20 petrol. Has there been any car in the country that has faced issues due to E20 petrol? Just name one."
As the debate over the adoption of ethanol-blended fuel continues, the Centre has maintained that any further decision to move to E25 and higher ethanol blends will be based on scientific testing and consultations with automakers.
About the Author
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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