The Ministry of Petroleum and Natural Gas on Tuesday released a detailed statement on the impact of 20 percent Ethanol Blended Petrol (E-20) on mileage and vehicle life after a row was sparked over its introduction. In its response, the Centre has not only emphasised that the move will reduce pollution and save money on oil imports, it also said that the formulation of the fuel is such that it will ensure better acceleration and even ride quality.

The ministry also dismissed claims that the mileage was significantly hit because of E20 petrol, stressing that its use gives "better acceleration, better ride quality and lowered carbon emissions by approximately 30 percent as compared to E10 fuel".

"Concerns related to performance and mileage being raised now were anticipated as early as 2020 by Government and an Inter Ministerial Committee (IMC) of the NITI Aayog examined them at length. This also was backed by research studies carried out by IOCL, ARAI and SIAM," the statement read.

Claims Of 'Drastic' Reduction In Fuel Efficiency Are 'Misplaced'

The ministry added that vehicles that turned for E20 deliver bette acceleration, which it said is crucial factor in city driving conditions. 

Addressing concerns of those suggesting that E20 leads to a "drastic" reduction in fuel efficiency, the ministry termed such claims "misplaced" and stated, "Vehicle mileage is influenced by a variety of factors beyond just fuel type. These include driving habits, maintenance practices such as oil changes and air filter cleanliness, tyre pressure and alignment, and even air conditioning load."

"Extensive discussions have been carried out with the Society of Indian Automobile Manufacturers (SIAM) as well as prominent manufacturers of vehicles. The efficiency drop (if any) in E10 vehicles has been marginal. For some manufacturers, vehicles have been E20 compatible from as far back as 2009. The question of any drop in fuel efficiency in such vehicles does not arise," it added.

E20 Fuel Switch Increased Farmers' Incomes And Curbed Suicides

The central government also highlighted that switching to E20 fuel is part of India's commitment to meet its climate goals and achieving net zero emissions by 2070. It added that going back to E-0 petrol would involve losing the "hard fought gains on pollution and the success achieved in energy transition."

The statement further highligted how the rural economy has witnessed transformative benefits due to the shift to E20 fuel, which the ministry claimed has increased the farmers' incomes, thereby helping curb suicides.

"A study on life cycle emissions of Ethanol done by NITI Aayog has said that GHG (greenhouse gas) emissions in case of use of sugarcane and maize-based ethanol are less by 65% and 50%, respectively than those of petrol," the ministry said.

"More income to farmers has not only contributed to furthering their well-being but has also helped decisively tackle the challenge of suicides by farmers. It may be recalled that in areas like Vidarbha, farmer suicides were widespread a few years ago," it added. 

The Ministry cited the example of Brazil, saying that it has been using E27 (fuel with 27 percent ethanol) for several years and has not faced any issues. It also said that many of the manufacturers, whose cars are bought and sold in India, including Toyota, Honda, and Hyundai, sell vehicles in Brazil as well.

On the issue of increased wear and tear, the ministry statement noted: "In most parameters including drivability, startability, metal compatibility, plastic compatibility, there are no issues. Only in case of certain older vehicles, some rubber parts and gaskets may require replacement  earlier than in case non blended fuel was used. This replacement is inexpensive and can be easily managed during routine servicing. It may need to be done once in the lifetime of vehicle and is a simple process to be carried out at any authorised workshop."

Ministry On E20 Pricing And Inurance Claims

In its statement, the Centre also addressed another criticism that ethanol-blended petrol should be sold at a cheaper price as compared to regular fuel. To this, the ministry said that the "weighted average price" of ethanol is now higher than the cost of refined petrol. 

"Despite the increase in price of ethanol in comparison to petrol, the oil companies have not gone back on the ethanol blending mandate because the programme delivers on energy security, boosts farmers' incomes and environmental sustainability," it said. 

The ministry, however, assured that the insurance claims will not be impacted by the E20 switch. It further responded to apprehensions about a rapid switch to fuels consisting higher ethanol levels, saying that the process requires extensive consultation.

"...the current roadmap commits government to E-20 up to 31.10.2026. Decisions for beyond 31.10.2026 will involve submission of the Report of the Inter Ministerial Committee, evaluation of its recommendations, stakeholder consultations and a considered decision of the government in this regard. That decision is yet to be taken," it said.