Lok Sabha Question No. 3062 (UNSTARRED), answered on 2025-12-18
Subject: Introduction of Ethanol-Blended Petrol
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Kodikunnil Suresh

## LOK SABHA UNSTARRED QUESTION No.3062

TO BE ANSWERED ON 18 th  December, 2025

## INTRODUCTION OF ETHANOL-BLENDED PETROL

## 3062.    SHRI KODIKUNNIL SURESH:

## पेᮝोिलयम और ᮧाकृितक गैस मंᮢी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether  the  Government  is  aware  of  concerns  regarding  the  nationwide  rollout  of  twenty percent ethanol-blended  petrol (E20),  particularly  relating  to  engine  corrosion,  lower  mileage and performance issues in vehicles not certified for E20 compatibility, if so, the details thereof;
- (b) whether  any  assessments  have  been  conducted  on  the  long-term  impact  of  E20  on  twowheelers and passenger vehicles manufactured prior to 2023, if so, the details thereof;
- (c) whether  the  Government  has  noted  the  sharp  rise  in  profits  of  Indian  Oil  Corporation, Bharat  Petroleum  Corporation  and  Hindustan  Petroleum  Corporation  following  the  rollout  of E20 and whether the Ministry has examined any possible link between higher ethanol blending and increased corporate profitability, if so, the details thereof;
- (d) whether  the  Government  has  evaluated  the  economic  burden  on  consumers  arising  from reduced fuel efficiency and additional maintenance costs, if so, the details thereof; and
- (e) the steps taken by the Government to ensure that the expansion of E20 does not adversely affect consumers or vehicle safety along with the measures proposed to reduce the price of E20 petrol?

## ANSWER

## पेᮝोिलयम और ᮧाकृितक गैस मंᮢालय मᱶ रा᭔य मंᮢी (᮰ी सुरेश गोपी)

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI SURESH GOPI)

(a) to (e): Government and OMCs have noticed certain media reports/social media postings and concerns  relating  to  the  use  of  E20  fuel.  The  Inter-Ministerial  Committee  (IMC)  constituted  on 26.12.2020 under NITI Aayog had, inter-alia, examined various aspects of vehicle compatibility and mileage.  This  assessment  was  also  supported  by research studies  conducted  by  Indian  Oil Corporation Limited (IOCL), the Automotive Research Association of India (ARAI), and the Society of Indian Automobile Manufacturers (SIAM). Extensive field trials on vehicles with E20 fuel did not indicate  any  compatibility  issue  or  any  negative  effect  of  E20.  These  studies  have  confirmed  that even  legacy  vehicles  do  not  exhibit  any  significant  variations  in  performance,  nor  do  they  show abnormal wear-and-tear when operated with E20 parameters such as drivability, startability, metal compatibility, and plastic compatibility. 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 life time of the vehicle and is a simple process to be carried out at any authorized workshop.

With  regard  to  the  concern  of  vehicle  mileage  due  to  the  use  of  E20  fuel,  Press  Release  dated 12.08.2025  issued  by  the  Government  and  a  Joint  Press  Release  dated  30.08.2025  issued  by  the Society of Indian Automobile Manufacturers, the Automotive Research Association of India, and the Federation of Indian Petroleum Industry (ARAI-FIPI-SIAM) have clarified that 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.  The  efficiency  drop  (if  any)  in  E  10  vehicles  has  been  marginal.  For  some manufacturers, vehicles have been E 20 compatible from as far back as 2009.

As per the Joint Statement dated 30.08.2025 released by ARAI, FIPI and SIAM, the use of E20 fuel gives  better  acceleration,  better  ride  quality  and  most  importantly,  lowers  carbon  emissions  by approximately 30% as compared to E10 fuel. Ethanol's higher-octane number makes ethanol-blended fuels a  valuable  alternative  for  higher-octane  requirements  that  is  crucial  for  modern  highcompression engines. Vehicles tuned for E20 deliver better acceleration which is a very important factor in city driving conditions. Additionally, ethanol's higher heat of vaporization reduces intake manifold temperatures, increasing air-fuel mixture density and boosting volumetric efficiency.

The price of petrol (including ethanol blended petrol) has been market determined with effect from 26.06.2010.  Since  then,  OMCs  take  appropriate  decisions  on  pricing  on  petrol  based  on  inter-alia international product prices, domestic market conditions etc. Further, procurement prices of ethanol have been increasing over the years. For the Ethanol Supply Year 2024-25, the average procurement cost of ethanol stands at Rs. 71.55 per litre (inclusive of transportation and GST), which was higher than the cost of refined petrol for OMCs.

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