Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Thursday acknowledged that petrol blended with 20 per cent ethanol (E20) may cause a slight reduction in vehicle mileage, but emphasised that fuel efficiency depends on several factors and dismissed concerns about vehicle damage or insurance claims being affected.
Speaking at a press conference held in New Delhi, Puri said ethanol-blended petrol had undergone extensive scientific testing before its rollout and that the decision to introduce E20 fuel was taken after consultations with all key stakeholders, including the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Research Association of India (ARAI).
"Somebody is saying that fuel mileage is going to drop. It is now well established that ethanol is even used in racing cars. Acceleration improves. What is that called? Knocking? Knocking also improves. Mileage? Yes, it may drop a little. But it may drop slightly due to various factors," Puri said.
Addressing concerns over insurance coverage for vehicles running on E20 fuel, the minister said such apprehensions were unfounded. "Someone says, 'Your insurance will no longer cover this'. Insurance companies have already clarified that there is no such issue," he said.
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Puri also said India's rapidly growing automobile sector has sufficient scope for multiple clean mobility technologies to coexist, including electric vehicles, biofuel-blended vehicles, hybrid vehicles and those powered by compressed natural gas (CNG).
"There is room for electric vehicles, biofuel blended vehicles, and we are currently only at 20 per cent ethanol blending. If we move from 20 per cent to 25 per cent, it will happen only after all the necessary tests have been completed. There is also enough space for hybrid vehicles and CNG vehicles," he added.
The Centre had earlier notified the Bureau of Indian Standards (BIS) specifications for petrol containing 22, 25, 27 and 30 per cent ethanol, while also exempting such fuel blends from excise duty. However, the Petroleum Ministry later clarified that the notification was only a regulatory measure and should not be interpreted as an indication of the immediate rollout of higher ethanol blends.
Amid rising public concerns about potential engine damage and reduced fuel efficiency, the ministry has consistently maintained that ethanol blending is backed by scientific evidence, is environmentally sustainable, and delivers significant economic and ecological benefits. It has also reiterated that claims suggesting widespread vehicle damage due to ethanol-blended fuel are not supported by available evidence.
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