E20 petrol safe, no engine failure reported, Gadkari tells Parliament
New Delhi: The government has strongly defended its E20 ethanol blending programme, asserting that extensive testing and real-world experience confirm its safety and reliability, despite a potential 2-6% reduction in fuel economy for some vehicles.
E20 fuel may reduce fuel economy by 2-6% depending on vehicle category and vintage, as stated by Road Transport and Highways Minister Nitin Gadkari.
Extensive tests and field experience have shown no evidence of engine failures, abnormal wear, corrosion, or reduced vehicle life due to E20 fuel.
The Ethanol Blended Petrol (EBP) programme has been implemented through a phased, scientifically validated process involving various industry bodies and manufacturers.
More than 20 crore two-wheelers and over 3 crore petrol cars have operated on E15+ and E19-E20 blends without verified widespread engine failure.
Ethanol blending is considered a strategic investment for India's energy security, price stability, and farmer welfare, reducing exposure to global crude oil price volatility.
Petrol blended with 20 per cent ethanol (E20) can reduce fuel economy by 2 to 6 per cent depending on the vehicle category and vintage, Road Transport and Highways Minister Nitin Gadkari informed Parliament on July 30, Thursday.
The Union minister, however, argued that tests for engine durability on a dynamometer and on-road vehicle tests have not shown any failures due to E20.
In a written reply to the Lok Sabha, Gadkari said E20 fuel provides better acceleration, improved ride quality and approximately 30 per cent lower carbon emissions compared to E10 fuel.
Gadkari said a study to evaluate the effect of E20 on BS-III, BS-IV and BS-VI E10 (gasoline) two-wheelers and four-wheelers was carried out jointly by ARAI, SIAM and Indian Oil Corporation Ltd (IOCL).
He said the study comprised of standard testing as per the respective certification requirements & customized test protocols developed along with the Original Equipment Manufacturers (OEMs).
"The fuel efficiency of vehicles may be reduced by 2 to 6 per cent depending on the vehicle category and vintage. The tests for engine durability on a dynamometer and vehicle tests on road have not shown any failures due to E20," the minister said.
Addressing Criticisms and Compatibility Concerns : The rollout of E20 petrol (80 per cent petrol, 20 per cent ethanol) has drawn criticism from opposition parties and some consumer groups, who have raised concerns about its impact on older vehicles not specifically designed for 20 per cent ethanol blends.
Critics have questioned whether all vehicles are fully compatible with E20, flagged the possibility of reduced fuel efficiency and higher maintenance costs, and sought clarity on liability if engine or fuel-system problems arise.
The government has maintained that the transition has been phased and backed by extensive testing, while automobile manufacturers have said they continue to honour warranty claims for vehicles using E20 fuel.
The opposition parties have repeatedly sought greater transparency on vehicle compatibility and consumer safeguards.
The minister explained that the ethanol-blended petrol (EBP) programme has been implemented through a phased, scientifically validated and consultative process .
The process involved NITI Aayog, automobile manufacturers, Oil Marketing Companies (OMCs), Automotive Research Association of India (ARAI), Society of Indian Automobile Manufacturers (SIAM), Indian Institute of Petroleum (IIP) and other technical institutions.
Programme History and Field Experience : In India, he said the ethanol blended petrol (EBP) programme commenced with a pilot in 2001, E5 was introduced in 2006, and although blending remained around 1.53 per cent in 2013-14, it has since been increased progressively in a calibrated manner after creating the necessary production capacity, infrastructure and regulatory framework.
According to him, 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.
Gadkari noted that more than 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.
"Manufacturer service data confirm that there is no abnormal corrosion, wear or reduction in vehicle life due to E20 fuel," he said, adding that manufacturers continue to honour warranty obligations for vehicles using E20 fuel, providing further confidence in its safety and reliability.
Government's Defence and Strategic Importance : Separately, in a written reply to a question in Lok Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said, "These studies also established that legacy vehicles do not exhibit any significant variation in performance or abnormal wear and tear due to E20," he said.
He added that laboratory studies, field validation and real-world operating experience had not established any widespread adverse impact on vehicle performance.
The government said E15+ petrol (15 per cent ethanol doped in petrol) had been in widespread use for more than three-and-a-half years and E19-E20 (19/20 per cent ethanol in petrol) fuel for more than two-and-a-half years, with over 20 crore two-wheelers and more than three crore petrol cars operating on these blends "without any verified evidence of widespread engine failure or vehicle breakdown attributable to ethanol blending."
Gopi said manufacturer service data also showed no abnormal corrosion, wear or reduction in vehicle life due to E20 fuel, while manufacturers continued to honour warranty obligations for vehicles using the fuel.
The minister cited data from a leading automobile manufacturer, which serviced 2.84 crore vehicles during 2025-26, including about 1.5 crore vehicles that were not originally certified as E20-compatible, and reported no E20-linked corrosion, abnormal wear or reduction in component life.
A leading two-wheeler manufacturer had reported similar field experience, while another original equipment manufacturer found no evidence of ethanol-induced corrosion after tracking 1.4 crore E20-operated vehicles over an extended period, he said.
Benefits and Economic Impact : The government said E20 fuel offered higher octane, better anti-knock performance, improved combustion characteristics, smoother acceleration and lower emissions, contributing to cleaner and more efficient engine operation.
On pricing, the minister said public sector OMCs procured ethanol under a framework designed to ensure adequate supplies, provide remunerative prices to producers and support the agriculture sector, rather than maximise company profits.
The weighted average ex-mill price of ethanol for the 2025-26 ethanol supply year was Rs 66.61 per litre, while the estimated procurement cost, including GST and transportation, was about Rs 71 per litre for IOC, Hindustan Petroleum Corp and Bharat Petroleum Corp.
The government said petrol prices were market-determined and reflected international crude oil prices, exchange rates, freight, taxes, ethanol procurement costs and other operational expenses.
It said public sector OMCs incurred an average under-recovery of about Rs 11 per litre on petrol between March and June 2026, amounting to around Rs 21,300 crore, as retail prices remained below market-determined levels.
The minister said India's dependence on crude oil imports made ethanol blending strategically important, particularly during the ongoing West Asian crisis.
"During the recent West Asian crisis, despite sharp increases in global crude prices, India was able to shield consumers through calibrated Government interventions, diversified sourcing and the increasing contribution of domestically produced biofuels," he said.
The government said that while global crude prices had risen by around 70-80 per cent since February 2026, domestic fuel prices had increased by only about 7-8 per cent.
It added that when the Indian crude basket touched nearly USD 135 a barrel, petrol could have cost around Rs 125 per litre at market prices, but consumers continued to pay Rs 94.77 per litre in Delhi, helped by OMCs procuring ethanol at about Rs 70 per litre.
He said ethanol blending had reduced India's exposure to international crude oil price volatility and exchange-rate fluctuations, calling it "a strategic investment in energy security, price stability, farmer welfare and foreign exchange savings, rather than a revenue-generating exercise for OMCs."
