New Delhi: The Ministry of Petroleum and Natural Gas on Tuesday said that reverting to unblended petrol would mean losing the pollution reduction and energy transition gains achieved through ethanol blending. It said a clear roadmap for 20 percent Ethanol Blended Petrol (E-20) has been in the public domain since 2021, giving over four years for vehicle technology, supply chains and the overall ecosystem to adapt.
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The ministry said the Inter-Ministerial Committee (IMC) of NITI Aayog had laid out a calibrated path to E-20 blending in 2021. Since then, it noted, vehicle manufacturers have improved technology, the ethanol supply chain has been scaled, and an enabling ecosystem has been put in place to support the shift.
According to the statement, ethanol blending between Ethanol Supply Year (ESY) 2014-15 and ESY 2024-25 (up to July 2025) has saved more than Rs 1,44,087 crore in foreign exchange, substituted about 245 lakh metric tonnes of crude oil and reduced carbon dioxide emissions by around 736 lakh metric tonnes — equivalent to planting 30 crore trees. At 20 percent blending, payments to farmers this year alone are expected to be about Rs 40,000 crore, with forex savings of Rs 43,000 crore.
The ministry said apprehensions over reduced fuel efficiency and vehicle life were anticipated as early as 2020 and examined by the IMC, backed by studies by IOCL, ARAI and SIAM. It said the efficiency drop in E-10 vehicles was marginal and that many manufacturers have produced E-20-compatible vehicles since 2009. E-20’s higher octane rating, it added, improves acceleration, ride quality and reduces carbon emissions by approximately 30 percent compared to E-10.
It also dismissed recent claims that use of E-20 fuel could void vehicle insurance, calling them “totally baseless” and cited clarifications from insurance companies. Safety standards for E-20, the ministry said, are established through BIS specifications and Automotive Industry Standards.
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The ministry said any decision to go beyond 20 percent ethanol blending before October 31, 2026 would require further IMC recommendations, stakeholder consultations and a considered government decision. Until then, it remains committed to E-20 as part of its strategy to promote cleaner, sustainable fuel options with minimal consumer impact.
