In the past few weeks, there’s been a growing controversy around ethanol-blended petrol (E20) and its negative effects on older vehicles. As a result, demand for an ethanol-free fuel option has been gaining traction. Without any ado, let’s try to understand why the issue is rising, who’s involved, and what the way forward could look like.
What is Ethanol Blending?
For those unaware, ethanol is actually an alcohol-based fuel, which is made from crops like sugarcane, maize and rice.
Ethanol has a naturally higher octane number (≈ 108 RON) compared to regular petrol, so blending it with petrol does increase the overall octane rating of the fuel and its oxygen content. This helps the fuel to burn cleaner than regular petrol, reducing greenhouse gas emissions and overall carbon footprint.
India’s Ethanol Journey: Why is Government Pushing Ethanol So Hard?
In the past few years, India has rapidly ramped up ethanol blending in petrol. From around 1.53% a decade ago to 10% (E10) by 2022, and now, E20 (20% ethanol) has been rolled out nationally ahead of original schedule by 2030. The aim is to reduce dependence on imported fossil fuel/oil, save foreign exchange, cut tailpipe emissions to curb pollution and boost farmers’ income. In fact, Ministry of Petroleum & Natural Gas (MoPNG) has reported that from 2014 to August 2024, India saved approximately ₹1 lakh crore in foreign exchange by substituting crude oil with ethanol-blended fuel.
Led by Union Minister Nitin Gadkari, MoRTH, has set ambitious targets to increase the blend to 27% (E27). In fact, the ministry aims to finalise regulatory standards and guidelines for this blend by the end of August 2025. The government aims to move towards an E30 blend by 2030.
Maize is also slowly but surely becoming India’s “second pillar” of ethanol production after sugarcane. In fact, the maize-based ethanol production increased from 0% in 2021-22 to 42% this year, claimed by Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, in a Pioneer Biofuels 360 Summit on August 2025.
Controversy Around Ethanol Blending
As soon as E20 petrol (20% ethanol blend) was launched across the country, complaints started pouring in. Many people began posting Instagram reels and YouTube videos showing problems with their cars and bikes, like rusting fuel tanks, damaged parts, and poor mileage. A Supreme Court PIL was also filed. Owners of older vehicles say they feel caught off guard by this sudden change.
1. Older Vehicles Suffer
Engines designed for pure petrol, E5 or E10 were never calibrated for higher ethanol content. Ethanol is more corrosive and has a lower energy density compared to petrol. This means:
- Mileage drops by 15–20% in some cars and two-wheelers.
- Rubber and plastic components like seals, hoses, fuel pumps, and injectors wear out faster.
- Owners face rougher rides, more frequent breakdowns, and in many cases, expensive repairs that weren’t part of their vehicle’s original life cycle.
- Most modern engines can safely run on E20 fuels. However, going straight to E27 might still need engine re-tuning, better fuel injectors, and better corrosion-resistant materials.
2. Reduced Mileage and High Fuel Prices
One of the biggest worries around the E20 fuel is reduced mileage. Since ethanol has a lower energy content than petrol, vehicles burn more fuel to produce the same power. This results in a 10-30% drop in fuel efficiency, especially in older vehicles that were never designed for higher ethanol blends. This has increased the overall runnings costs.
The frustration is further compounded by the fact that India has been buying crude oil from Russia at discounted rates since the Ukraine conflict, but those benefits were never passed on to the end consumers and fuel prices have largely stayed high. This feels like a betrayal to many, especially since Union Minister Nitin Gadkari once promised that ethanol blending could bring fuel prices down to as low as ₹15 per litre. Customers now call that a “JHUMLA”, as prices have never been reduced despite increased blending, leaving them with lower mileage, higher fuel spend, and added vehicle troubles like rough idling, engine knocking, and cold-start issues.
3. Warranty & Insurance Grey Zone
There’s also the problem of who pays for the damage. Most insurance policies do not cover fuel-related damage if the vehicle wasn’t designed for E20. At the same time, manufacturers, like Renault, Toyota, have also issued warning for their owners advising to not use E20 petrol in their old vehicles as this may increase the risk of fuel tank rusting, damaged hoses, gaskets, and injectors, and in many cases, even the warranty gets void.
In short, nobody it taking responsibility. Insurance companies don’t cover such damages, and manufacturers aren’t giving free fixes. Instead some of them have started offering retrofit kits, which cost extra and still don’t guarantee smooth performance. For owners of older vehicles, it feels like a double blow: first lower mileage with higher fuel spends and now extra money to keep their vehicles safe from the new fuel.
4. Unavailability of non-E20 Fuel
With the nationwide roll out of E20 fuel, petrol pumps have phased out lower-ethanol blend fuel like E5 or E10. With this, owners of older vehicles which are not designed for E20 are struggling to find compatible fuel, leading to worries about reduced mileage, engine wear and expensive repairs. In short, they are forced to use blended fuel despite it may not suit to their vehicles.
5. Fuel Adulteration Concerns
Adulterated fuel is a long-standing issue in India, where petrol or diesel is illegally mixed with cheaper substances like water, kerosene or solvents to cut costs. This practice not only lowers the quality of the fuel but can also cause serious harm to the engines. And with the roll out of E20, unscrupulous suppliers or petrol pumps may tamper with standard E20 by adding more poor-quality ethanol or unauthorised substances to further cut costs. This may worsen the situation more.
6. Other Issues
- Cold-start problems in winter.
- Rough idling when the vehicle is stationary.
Solutions to the Ethanol Challenge
- Gradual Implementation: Instead of jumping directly to E27, stick to E20 nationwide for a few years. This gives automakers and fuel retailers time to adapt.
- Dual-Fuel Strategy: Allow pumps to sell both E5, E10 and E20, so older vehicle owners aren’t forced into using incompatible fuels.
- Vehicle Modification Kits: Subsidise retrofit kits for older cars and bikes to make them ethanol-ready.
- Refund of Road Tax To Older Vehicles: Government should return a portion of road tax for owners of older vehicles that are negatively affected by mandatory E20 ethanol blending to offset their financial burden.
- Incentives to Upgrade: Incentiving owners of older vehicles thjrough measures like free registration or discounts in registration fees may also encourage them to upgrade.
- Fuel Additives & Engine Tuning: Using additives and periodic engine tuning can mitigate some damage, though these are not long-term solutions.
- Insurance Coverage: Government should issue advisory to insurance companies to cover ethanol-related damage for older cars, with add-on packages where needed.
Big Question ¿
Central government has plans to roll out E27 by 2025-26 and E30 by 2030. Automaker are already started testing compatible engines, but who will bear the hidden costs of this transition? And can farmers genuinely benefit, or the ethanol will become another crony industry controlled by a few? And most importantly, is India rushing too fast without securing a smoother, more inclusive shift?
In short, ethanol blending is actually have environmental and economic benefits. However, the way it is being pushed raises concerns. Increasing running costs and maintenance/service charges are reality. For farmers, the promise of better earnings may depend on fair policies. Policymakers should make sure the ethanol revolution does not turn into another controversy like the farm laws.
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