E20 Fuel Controversy in India Explained
India's introduction of E20 fuel, which is a blend of 80% petrol and 20% ethanol, has sparked considerable controversy across the nation. The initiative aims to reduce oil imports, lower carbon emissions, and support local sugarcane farmers who supply the essential ethanol. However, the rollout, which began in 2023, has faced significant challenges, particularly concerning older vehicles that are not compatible with this fuel blend.
Only vehicles manufactured after April 2023 are designed to run on E20 fuel. Users of older models are reporting issues like engine knocking and reduced fuel efficiency, leading to growing concerns about increased costs. Many vehicle owners have noticed a decrease in mileage of about 6-8%, meaning they pay more per kilometer despite the fact that ethanol is cheaper than petrol.
Interestingly, E20 fuel is often priced similarly to regular petrol at the pumps, which undermines the financial benefits of using ethanol. The Society of Indian Automobile Manufacturers (SIAM) has acknowledged that while E20 does reduce mileage, it does not pose a safety risk. SIAM officials have reported that millions of vehicles have been operating on E20 without any significant breakdowns, although real-world conditions may lead to greater drops in efficiency.
India's goal is to produce over 1,000 crore liters of ethanol annually to support the E20 initiative, but production capacity must catch up with demand. As of mid-2025, India's ethanol production capacity had reached 1,810 crore liters, a significant increase from previous years. Nevertheless, achieving the desired blending rates remains a challenge.
While blending ethanol can help reduce carbon dioxide emissions, it may also increase other harmful emissions, including aldehydes. Additionally, the environmental impact of large-scale sugarcane farming raises concerns about water scarcity in India. Oil refiners also face the added cost of building specialized storage for E20 fuel.
As the Supreme Court prepares to review this controversial policy, the implications for Indian consumers, the environment, and the automotive industry remain to be seen. The future of E20 fuel in India hangs in the balance as stakeholders grapple with its benefits and drawbacks.
