The controversy round ethanol-blended petrol has intensified as soon as once more. High representatives from the automotive and petroleum sectors o Saturday admitted that utilization of 20% ethanol-blended gas (E20) impacts the mileage of a automobile “barely” however it’s outweighed by the “enormous profit” it brings “to the nation, to the society, to the farmer, to the atmosphere, to the exchequer”.
At a joint press briefing, business physique Society of Indian Car Producers (SIAM), Automotive Analysis Affiliation of India (ARAI) and representatives of the Federation of Indian Petroleum Trade (FIPI) addressed issues over effectivity, automobile compatibility and guarantee claims.
Mileage 2-4% drop, not 20-50%: SIAM
SIAM Govt Director PK Banerjee acknowledged that E20 use might scale back gas effectivity by 2-4% however dismissed client claims of a 20-50% mileage drop as “misplaced misinformation”.
“The mileage-related challenges, there may be admittance, clearly, that because of the intrinsic nature of the gas there’s a marginal drop. However this accrues an enormous profit to the nation, to the society, to the farmer, to the atmosphere, to the exchequer and to all of us,” Banerjee mentioned.
He defined that ethanol has 30-35% decrease calorific worth in comparison with petrol, which interprets into round 6% decrease vitality density. Nonetheless, the precise influence on gas effectivity relies on driving circumstances, site visitors patterns and utilization of air-con, he mentioned.
Defending the federal government’s ethanol push, Toyota Kirloskar Motor’s Vikram Gulati argued that the long-term financial positive factors far outweigh short-term effectivity losses borne by customers. “The cash that might have been despatched overseas for crude imports is now going to Indian farmers, who will turn into extra economically resilient and contribute to home demand,” Gulati mentioned.
He careworn that ethanol mixing was enabling a clean transition to vitality self-reliance, whereas supporting sustainability targets and making a mannequin for different growing economies.
Earlier this month, Highway and Highways Minister Nitin Gadkari hit out at a piece of those that he claimed have been spreading misinformation about E20 gas. Whereas talking at an occasion, Gadkari had mentioned, “By placing 20% Ethanol-blended Petrol, has there been any automobile within the nation that has confronted points? Simply identify one.” His assertion was adopted by a number of posts on social media the place automobile homeowners shared their grievances about automobile breakdowns after utilizing E20 gas.
Guarantee and insurance coverage claims “misplaced”
On apprehensions that using E20 might void automobile warranties or complicate insurance coverage claims, SIAM firmly dismissed such issues. “The E20 fuel-related insurance coverage and guarantee, any declare, whoever is spreading is misplaced. There shall be honouring of the guarantee with none ifs and buts by OEMs,” Banerjee clarified. He additional claimed that “tens of millions of automobiles” have already been operating on E20 and not using a single reported case of engine breakdown.
Including technical validation, ARAI Director Reji Mathai cited research performed in 2016 and 2021, which discovered no opposed influence of E20 on automobile efficiency. Nonetheless, when requested for particulars on the report, Mathai confirmed the findings have been submitted to regulators and can’t be made public because of the confidentiality of information of the OEMs concerned, information company PTI reported.
Rural and financial positive factors
FIPI Advisor PS Ravi highlighted the macroeconomic and social advantages of ethanol mixing. In 2025 alone, he mentioned, ethanol procurement funds value Rs 40,000 crore have flowed on to farmers.
Since 2014-15, India has substituted 245 lakh metric tonnes of crude oil, saving the exchequer Rs 1.44 lakh crore in international trade. For 2025, foreign exchange financial savings of Rs 43,000 crore are projected. In accordance with Ravi, Ethanol mixing has additionally helped scale back 763 LMT of carbon dioxide emissions.
“Mixing ethanol has diminished crude import dependence, shielding India from world oil worth shocks and disruptions, whereas giving us geopolitical leverage as a pacesetter in sustainable fuels,” he added. The Supreme Courtroom is scheduled to listen to PIL on the utilization of E20 gas within the nation tomorrow (September 1).
