E20 in India: Clean Fuel or Consumer Trap?

RANJAN

5 days ago

Overview: What’s Going On with E20?

E20 is a fuel blend of 20% ethanol and 80% petrol, introduced to reduce oil imports, curb emissions, and support farmers.
It has been rolled out at nearly 90,000 fuel stations across India, with older blends like E5/E10 phased out.

Many drivers, especially those with older vehicles (built before April 2023), report 6–8% lower mileage, higher maintenance costs, and fear engine corrosion or damage.
Some automakers have been unclear or contradictory in guidance, further fueling confusion.

A Public Interest Litigation (PIL) pushed for ethanol-free petrol and mandatory labeling at pumps, arguing consumer rights and vehicle safety were at stake.
The Supreme Court dismissed the PIL on September 1, 2025, backing the government’s E20 policy. It upheld the push for cleaner energy while rejecting calls for alternative fuel options and labeling mandates.

SIAM (Society of Indian Automobile Manufacturers) acknowledged a 2–4% mileage drop, but emphasized E20 is safe.
ARAI, which tested vehicles from 2005 onward, reported no significant impact on performance.
The Ministry of Petroleum & Natural Gas dismissed fears around insurance invalidation or major engine damage, instead highlighting benefits like improved acceleration, better RON, and environmental gains; they noted minor component wear in older vehicles as manageable via routine servicing .In Reuters coverage, automakers admitted minor mileage reduction but stressed there are no safety risks.
The government estimates that E20 rollout has saved over ₹1.44 lakh crore in forex, reduced CO₂ emissions by 736 lakh tonnes, and supported rural economies and sugarcane farmers.

Gadkari has been vocal in defending E20, calling ethanol a “very good, clean fuel” that supports health, rural prosperity, and reduces import bills. He challenged critics to cite a single case of actual vehicle damage from E20, arguing that no such instances exist so far.
At the NDTV energy summit, he urged that E20 is the fuel of the future and essential to reducing India’s carbon footprint.
He also accused a “petrol lobby” of spreading falsehoods, asserting that the only agenda should be advancing clean energy—not undermining it.

Some critics allege a conflict of interest: Gadkari’s sons—Nikhil and Sarang—are involved in sugarcane/ethanol businesses (CIAN Agro Industries, Manas Agro), which allegedly saw a surge in revenue and stock value after the policy was enacted.
Revenue for CIAN Agro reportedly jumped from ₹17 crore in Q1 FY24 to ₹510 crore in Q1 FY26, with stock prices rising sharply.
The Gadkari’s have denied wrongdoing, and no ongoing legal action or investigations have been reported.