Amid widespread misinformation on several platforms regarding the Ethanol Blended Petrol (EBP) Programme, the Ministry of Petroleum and Natural Gas has released a detailed set of Frequently Asked Questions (FAQs) explaining the rationale behind the policy and addressing concerns raised about ethanol-blended fuel. The development comes amid several reports claiming that E20 damages rubber components, engines or fuel systems of vehicles. The FAQs also seek to provide evidence-based answers on issues ranging from ethanol blending targets and fuel choices to pricing.
Why did India appear to rush its ethanol blending targets?
The Ministry said India’s ethanol blending programme has evolved over more than two decades and was not introduced in haste. It noted that the pilot programme began in 2001, E5 blending was rolled out in several states by 2006, and the policy framework was notified in 2013.
According to the Ministry, ethanol production capacity was initially limited due to dependence on sugarcane. Following the National Policy on Biofuels in 2018, multiple ministries worked together to expand feedstocks, infrastructure and investment. Oil Marketing Companies invited investment proposals for Dedicated Ethanol Plants in 2021, while NITI Aayog published a roadmap for ethanol blending following consultations with stakeholders.
The Ministry said blending levels increased in phases from around 8.1 per cent in ESY (Ethanol Supply Year) 2020-21 to 20 per cent in ESY 2025-26 (November-June 2026), adding that the transition was planned, gradual, and based on consultations with automobile manufacturers, oil companies, and other stakeholders.
| Ethanol Supply Year | Blending Percentage / Status |
| ESY 2020-21 | ~8.1% |
| ESY 2021-22 | 10.00% |
| ESY 2022-23 | 12.10% |
| ESY 2023-24 | 14.60% |
| ESY 2024-25 | 19.20% |
| ESY 2025-26(Nov-June 2026) | 20% |
Why don’t consumers have the option to buy pure petrol, E10, or E20?
The Ministry said automobile manufacturers were consulted before introducing both E10 and E20 fuel. It stated that extensive testing covered material compatibility, engine calibration, durability, emissions and fuel efficiency before E20 was rolled out.
According to the Ministry, manufacturers continue to honour vehicle warranties, including for older models. It cited field data from Maruti Suzuki and Hero MotoCorp, stating that no E20-linked corrosion, abnormal wear or component-life damage had been reported during vehicle servicing.
The Ministry acknowledged that some vehicles may experience a 3-5 per cent reduction in fuel economy but said E20 offers higher octane, better anti-knock characteristics, smoother acceleration, cleaner combustion and lower lifecycle carbon emissions.
It also said that maintaining separate nationwide supply chains for pure petrol, E10, and E20 would create logistical challenges, increase costs, and affect operational efficiency. The Ministry added that nearly Rs 1 lakh crore has been invested in ethanol production and related infrastructure, and that public policy must balance consumer interests with energy security, environmental sustainability, farmer welfare, and national resource utilisation.
Why isn’t E20 cheaper than E10 or pure petrol?
The Ministry said ethanol is procured at remunerative prices to ensure fair returns for farmers. It stated that maize-based ethanol is currently procured at around Rs 71.86 per litre before GST and other costs, making E20 costlier to produce than pure petrol when international crude oil is around USD 70 per barrel.
According to the Ministry, ethanol blending helps reduce India’s dependence on imported crude oil and shields part of domestic fuel consumption from fluctuations in global crude prices. It said India recorded one of the lowest increases in retail fuel prices among major economies and neighbouring countries during recent global disruptions.
The Ministry stated that since ESY 2014-15, the Ethanol Blended Petrol Programme has saved over Rs 1.97 lakh crore in foreign exchange, substituted nearly 316 lakh metric tonnes of crude oil, reduced around 952 lakh metric tonnes of carbon dioxide emissions and transferred more than Rs 1.66 lakh crore to Indian farmers.
|
Feed Stock
|
Ethanol Supply Year (Price in Rs.) | ||||
| 21-22 | 22-23 | 23-24 | 24-25 | 25-26 (Provisional) | |
| C – Molasses | 46.66 | 49.41 | 56.28
|
57.97 | 57.97 |
| B – Molasses | 59.08 | 60.73 | 60.73 | 60.73 | 60.73 |
| Sugarcane Juice/Sugar/Syrup | 63.45 | 65.61 | 65.61 | 65.61 | 65.61 |
| Damaged Food Grains | 52.92 | 64.0@ | 64 | 64 | 64 |
| FCI Rice | 56.87 | 58.5 | 58.5 | 58.5 | 60.32 |
| Maize | 52.92 | 66.07@ | 71.86 (Incentive of 5.79) |
71.86 | 71.86 |
4. Are concerns about E20 damaging older vehicles justified?
The Ministry said claims that E20 damages rubber components, engines or fuel systems are not supported by scientific evidence. It stated that expert committees involving automobile manufacturers, ARAI, SIAM, oil companies and technical institutions were constituted before the E20 roadmap was finalised.
According to the Ministry, E20 underwent laboratory testing and field validation covering engine durability, fuel systems, corrosion resistance, drivability, emissions and performance before its rollout.
The Ministry said Maruti Suzuki serviced nearly 2.5 crore vehicles, including around 1.5 crore older vehicles not originally certified as E20-compatible, without widespread warranty claims or component failures linked to E20.
It also clarified that the term “E10 compatible” in older vehicle manuals refers to the fuel specification in effect when the vehicles were certified and does not indicate that the vehicles become unsafe after fuel standards are upgraded following scientific testing and regulatory approval.
The Ministry added that ethanol and blended petrol conform to Bureau of Indian Standards (BIS) specifications and undergo quality checks throughout the supply chain. It said state governments have been asked to enforce strict action against fuel adulteration and maintained that E20 is a safe, cleaner and scientifically validated fuel.
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