Ethanol blending improves ride quality, mileage and cuts emission: Centre

New Delhi: Amid criticism over blending ethanol with petrol, the Centre on Tuesday defended its decision, issuing a detailed rebuttal and addressing various claims circulating on social media.

The government reiterated that biofuels and natural gas are India’s bridge fuels, providing a viable, non-disruptive path towards the country’s commitments to a greener future and its Nationally Determined Contribution (NDC) of achieving Net Zero by 2070.

Ethanol blending helps cut emissions

Citing a NITI Aayog study on life cycle emissions of ethanol, the government said that greenhouse gas (GHG) emissions from sugarcane and maize-based ethanol are lower by 65% and 50% respectively, compared to petrol.

Welfare and upliftment of rural farmers

Apart from reducing pollution, the ethanol blending programme has brought transformative benefits to the rural economy, including the elimination of sugarcane arrears, improved viability of maize cultivation, and increased farmer incomes, which have helped tackle issues like farmer suicides in regions such as Vidarbha.

Annadatas to Urjadaatas

The government noted that ethanol blending has diverted funds previously spent on crude oil imports to farmers, making them “Urjadaatas” alongside “Annadatas.”

From Ethanol Supply Year (ESY) 2014-15 to July 2025 in ESY 2024-25, public sector oil marketing companies’ ethanol blending in petrol has saved over Rs 1,44,087 crore in foreign exchange, substituted about 245 lakh metric tonnes of crude oil, and reduced CO₂ emissions by around 736 lakh metric tonnes, equivalent to planting 30 crore trees. At 20% blending, payments to farmers this year alone are expected to be Rs 40,000 crore, with foreign exchange savings of approximately Rs 43,000 crore.

E20 fuel improves mileage and engine performance

Concerns regarding performance and mileage were anticipated as early as 2020 and examined by an Inter-Ministerial Committee of NITI Aayog, with studies by IOCL, ARAI, and SIAM. According to the government, E20 fuel offers better acceleration, improved ride quality, and about 30% lower carbon emissions compared to E10. Ethanol’s higher octane number (~108.5 vs petrol’s 84.4) and heat of vaporisation enhance engine performance, particularly in city driving conditions.

India’s regular petrol has moved from a Research Octane Number (RON) of 88 to 91 under BS-VI norms, and further to RON 95 with E20 blending, improving anti-knocking properties. The government said claims of “drastic” fuel efficiency drops are misplaced, noting multiple influencing factors and highlighting that many vehicles have been E20-compatible since 2009.

Ethanol blending: A Step towards energy transition

Returning to unblended petrol, it stressed, would reverse gains in pollution control and energy transition. The roadmap for E20 blending has been public since 2021, allowing time for technological and supply chain readiness. It pointed to Brazil’s success with E27 fuels and noted that BIS and Automotive Industry Standards ensure E20’s safety and compatibility, with only minor, occasional rubber part replacements needed in older vehicles.

Ethanol pricing

On pricing, the government clarified that while ethanol was cheaper than petrol in 2020-21, procurement prices have since risen. As of July 31, 2025, the average ethanol procurement cost for ESY 2024-25 is Rs 71.32 per litre, inclusive of transport and GST, making it costlier than refined petrol. However, the blending mandate remains in place due to its benefits for energy security, farmers, and environmental sustainability.

Ethanol blending and insurance claims

Petroleum Ministry dismissed claims that E20 usage affects vehicle insurance, calling them baseless and pointing to clarifications from insurance companies. Automobile manufacturers continue to support customers through authorised service networks.

On moving beyond E20, the government stated that any decision would be taken after October 31, 2026, following the Inter-Ministerial Committee’s report, stakeholder consultations, and government evaluation.

The government reaffirmed its commitment to promoting cleaner, sustainable fuel options while ensuring minimal consumer impact during the transition.