The Indian government has recently acknowledged a marginal decrease in fuel efficiency for older vehicles running on E20 ethanol-blended petrol. Minister of State for Petroleum and Natural Gas, Suresh Gopi, stated in the Rajya Sabha that pre-2023 E10-compatible vehicles might experience a 3-5% reduction in mileage.
However, the government was quick to allay concerns regarding vehicle damage. Gopi emphasized that while fuel economy can be affected, factors such as driving habits, tire pressure, vehicle maintenance, wheel alignment, and air-conditioning load play a more significant role in overall mileage than the fuel type itself.
E20 Fuel Compatibility and Benefits
The Ministry of Petroleum and Natural Gas highlighted that E20 fuel promotes cleaner and more efficient engine operation, leading to improved emissions performance. The ministry also confirmed its compatibility with existing fuel systems and materials, asserting that it does not cause abnormal wear and tear or other compatibility issues.
Manufacturers' service data supports these claims. One major four-wheeler manufacturer serviced over 2.84 crore vehicles in FY 2025–26, including 1.5 crore older, non-E20-certified vehicles, without reporting any damage attributable to E20 fuel. Similarly, a leading two-wheeler manufacturer's extensive service data found no higher incidence of damage in vehicles using E20 compared to earlier fuel blends. Manufacturers continue to honor warranty obligations for vehicles using specification-compliant fuel.
Future of Ethanol Blending
Currently, the government has no plans to increase ethanol blending in petrol beyond 20% or to introduce ethanol blending in diesel for commercial use. A draft notification proposing amendments to the Central Motor Vehicles Rules has been issued to formally incorporate higher blends of ethanol in petrol, solidifying the regulatory framework for E20.