E20 Petrol May Lower Mileage Slightly, But National Gains Far Greater: Industry Experts

New Delhi, August 30 – The adoption of 20% ethanol-blended petrol (E20) may cause a marginal 2–4% dip in vehicle fuel efficiency, but industry leaders and testing agencies emphasized on Saturday that the wider economic and environmental benefits far outweigh this cost.

At a joint press briefing, the Society of Indian Automobile Manufacturers (SIAM), the Automotive Research Association of India (ARAI), and petroleum industry representatives dismissed exaggerated claims of 20–50% mileage losses as “misinformation.”

“The intrinsic nature of the fuel does lead to a small reduction in mileage, but the benefits to society, farmers, the economy, and the environment are immense,” said SIAM Executive Director P.K. Banerjee. He added that ethanol’s lower calorific value accounts for the difference, but factors like driving style and traffic conditions also influence efficiency.

Addressing customer concerns, Banerjee clarified that insurance and warranty issues linked to E20 are “misplaced” and assured that vehicle manufacturers will continue to honour warranties without exceptions. He also highlighted that millions of vehicles have already used E20 fuel without engine failures.

Supporting these claims, ARAI Director Reji Mathai cited studies from 2016 and 2021 which found no adverse impact of E20 on engines. Although the reports remain confidential due to automaker data, he said the findings had been shared with relevant authorities.

On the economic front, Federation of Indian Petroleum Industry (FIPI) advisor P.S. Ravi noted that ethanol procurement worth ₹40,000 crore was made in 2025 alone, boosting farmer incomes. He added that since 2014, ethanol blending has replaced 245 LMT of crude oil, saving ₹1.44 lakh crore in foreign exchange and reducing 763 LMT of carbon dioxide emissions.

Toyota Kirloskar Motor’s Country Head Vikram Gulati stressed that beyond energy savings, ethanol blending drives rural prosperity and strengthens India’s economic resilience. “Money that would otherwise go overseas for crude imports is now reaching farmers, fueling domestic growth,” he said.

Industry leaders concluded that E20 adoption is positioning India as a global model for sustainable fuels while advancing self-reliance in energy and technology.