Public discontent over mileage grows as Centre eyes 27% ethanol mix

Since 2014-15, India has already saved more than Rs 1.40 lakh Cr in foreign exchange through petrol substitution, but that has not reflected on the petrol prices so far.

Update: 2025-08-06 05:51 GMT

Vehicle owners are also anguished that there has been no drop in prices of fuel (Representational Image)

Guwahati, Aug 6: Buzz around the drop in mileage is getting shriller among vehicle users, and there are fears that if more ethanol gets added to fuel, it might force owners to scrap their old vehicles.

Having achieved 20 per cent ethanol blending target six years ahead of schedule, the Central government is planning to increase the blending target to more than 20 per cent (E20) to reduce emissions further. Norms for 27 per cent ethanol blending in petrol (E27) is likely soon.

While complaints of poor fuel economy are rising, vehicle owners are also anguished that there has been no drop in prices of fuel despite sugarcane-based ethanol being cheaper (around Rs 59 per litre). There are also apprehensions that ethanol-blended fuel is reducing the lives of the vehicles.

“Ethanol mixed with petrol project now slated to hit 27 per cent. My car’s manual says it cannot take more than 10 (E10). Mileage has dropped to 9 from 12. So I am hit with high prices for mixed fuel, reduced mileage. Stop mixing,” a car owner wrote on X.” Car mileage has decreased almost 10 per cent, driving on same road, same way, looks like ethanol blending is eating into our pocket without even telling us. Funny part is that they don’t even reduce petrol price in proportion,” said another owner.

Since 2014-15, India has already saved more than Rs 1.40 lakh crore in foreign exchange through petrol substitution, but that has not reflected on the petrol prices so far.

Many feel that old vehicles can get ready for the scrapyard as increasing blending will lead to further drop in mileage and if engines aren’t compatible, owners will suffer with endless maintenance issues in the name of green fuel.

In a report in 2021, Niti Aayog had admitted that the existing vehicles on road “are material compatible to E10 but their engine/vehicles are not tuned to E10 for optimum performance efficiency”.

A project to study the suitability of 20 per cent ethanol-gasoline blend (E20) with in-use vehicles was undertaken by Automotive Research Association of India (ARAI), Indian Institute of Petroleum (IIP) and Indian Oil Corporation (R&D), and it was found that fuel economy decreased up to 6 per cent (depending on the vehicle type) on an average basis.

Most E20-compliant cars currently in use in India as manufactured post 2023, and a bulk of vehicles on road are not compatible with the currently marketed blended fuel.

“My car was manufactured in 2020, not even 5 years old, and it’s not built for E20. Just because the engine runs doesn’t mean it’s safe. It’s like feeding slow poison. The car may run today but will end up in garage tomorrow. Ethanol blending is a positive move for India’s energy security and environmental objectives. However, the effects on end users must be considered during such a large-scale transition,” Venkatesh, another vehicle owner, said.

However, Union Petroleum Ministry has not denied the allegation, but said in a statement on Monday that “the marginal drop in efficiency can be further minimized through improved engine tuning and use of E20-compatible materials, which leading automobile manufacturers have already adopted.”

On corrosion, it said, “Replacement of some rubber parts/ gaskets could be advised in certain older vehicles after prolonged use of say 20,000 to 30,000 kms. This replacement is inexpensive and easily done during regular servicing of the vehicle.”

Blending rates vary widely among countries, with only a handful of countries blending ethanol at 10 per cent or higher, and the remaining countries blending at a low rate or not at all.

In US, most gasoline is blended at 10 per cent ethanol. India will be second to Brazil where the standard mandate is 27 per cent.

As per new regulations, all gasoline-powered vehicles in India, including hybrids, manufactured from April 1, 2025, must be E20-certified to meet emission norms.

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