**Executive Summary**
This document is an answer provided by the Minister of State in the Ministry of Petroleum & Natural Gas, Shri Suresh Gopi, to unstarred question No.3062 raised in Lok Sabha by Shri Kodikunnil Suresh, regarding the introduction of twenty percent ethanol-blended petrol (E20). The response addresses concerns related to E20's impact on vehicles and fuel costs, referencing assessments conducted by various organizations and committees with a deadline for the answer to be provided by December 18th, 2025.
**Key Points / Main Content**
* **Concerns and Assessments:**
* The government acknowledges concerns regarding engine corrosion, reduced mileage, and performance issues with E20 in non-certified vehicles.
* The Inter-Ministerial Committee (IMC) examined vehicle compatibility and mileage aspects.
* Research studies by IOCL, ARAI, and SIAM support IMC findings.
* **Impact on Vehicles:**
* Extensive field trials showed no compatibility issues or negative effects of E20.
* Legacy vehicles do not exhibit significant performance variations or abnormal wear with E20.
* Some older vehicles may require earlier replacement of rubber parts and gaskets, which is manageable during routine servicing.
* **Vehicle Mileage and Performance:**
* Vehicle mileage is influenced by factors beyond fuel type (driving habits, maintenance, etc.).
* E20 offers better acceleration, ride quality, and reduces carbon emissions by approximately 30% compared to E10.
* E20 is suitable for modern high-compression engines and improves air-fuel mixture density.
* **Pricing:**
* Petrol prices are market-determined since 2010, with OMCs making pricing decisions based on international product prices and domestic market conditions.
* Ethanol procurement prices have increased over the years.
* The average procurement cost of ethanol for the Ethanol Supply Year 2024-25 is Rs. 71.55 per liter, higher than the cost of refined petrol for OMCs.
**Impact Analysis**
**Consumers**
* **Impact:** Addressed consumer concerns about vehicle compatibility, performance, maintenance costs, and overall fuel efficiency with E20 fuel.
* **Action Required:** No specific action required, but consumers are encouraged to consider driving habits and maintenance practices for optimal fuel efficiency.
**Vehicle Manufacturers (SIAM)**
* **Impact:** SIAM's research and joint statements are referenced, indicating their involvement in assessing E20's effects on vehicles.
* **Action Required:** No specific action, but they are encouraged to support consumer education and update compatibility information for vehicles.
**Oil Marketing Companies (OMCs)**
* **Impact:** OMCs are responsible for pricing decisions and the procurement of ethanol for blending.
* **Action Required:** OMCs should continue to make appropriate pricing decisions based on market conditions and ensure the availability of E20 fuel.
**Indian Oil Corporation Limited (IOCL), the Automotive Research Association of India (ARAI)**
* **Impact:** Their research supported the IMC assessment
* **Action Required:** No specific action required
Key Entities Referenced
E20: Twenty percent ethanol-blended petrol; the primary subject of the questions relating to its rollout, impact on vehicles, consumer burden and safety.
Ministry of Petroleum & Natural Gas: The government ministry responsible for addressing concerns and questions about the introduction and impact of E20 fuel.
Inter-Ministerial Committee (IMC): Committee constituted under NITI Aayog to examine vehicle compatibility and mileage relating to the use of E20 fuel.
Automotive Research Association of India (ARAI): An automotive research association that conducted research studies supporting the assessment of E20 fuel.
Society of Indian Automobile Manufacturers (SIAM): Society of Indian Automobile Manufacturers that conducted research studies supporting the assessment of E20 fuel.
LOK SABHA
UNSTARRED QUESTION No.3062
TO BE ANSWERED ON 18th December, 2025
INTRODUCTION OF ETHANOL-BLENDED PETROL
3062. SHRI KODIKUNNIL SURESH:
पे(cid:7069)ोिलयम और (cid:7079)ाकृितक गैस म(cid:7074)ं ी
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 two-
wheelers 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
पे(cid:7069)ोिलयम और (cid:7079)ाकृितक गैस म(cid:7074)ं ालय म(cid:7286) रा(cid:6996)य म(cid:7074)ं ी
((cid:7088)ी 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 andgaskets 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 high-
compression 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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