Does E20 fuel cut mileage by 30%? Government responds to key concerns

The government has responded to claims surrounding E20 petrol, addressing concerns over mileage loss, engine damage, insurance, fuel prices and water use

In the wake of the growing debate over the impact of E20 fuel on vehicles, the Ministry of Petroleum and Natural Gas issued a statement on Sunday addressing several concerns and claims circulating on social media.

 

Does E20 petrol reduce a vehicle’s mileage by 30 per cent? Can it damage older engines or affect insurance and warranty claims? And if ethanol is cheaper than petrol, why are consumers not paying less at the pump?

 

India achieved 20 per cent ethanol blending in petrol in 2025-26, five years ahead of schedule. Under the ethanol petrol blending programme, blending has increased from less than 1.5 per cent in 2013-14 to 20 per cent in 2025-26, according to the press release.

 

Here are the key claims surrounding E20 petrol and how the government has responded to them.

 

Does E20 cut mileage by 30 per cent?

 

The government rejected the widely made claim of a 30 per cent drop in mileage because of E20 petrol.

 

“The 30 per cent figure refers only to ethanol's lower calorific value compared to petrol, not to a drop-in real-world mileage. Mileage depends on driving habits, tyre pressure, servicing and AC load far more than fuel type,” the government said.

 

Citing Maruti Suzuki, the government said the actual impact on mileage is much smaller. For a car delivering 20 km per litre, the drop could be around 0.6 km per litre, according to the company.

 

Does E20 damage engines, especially older ones?

 

According to the government statement, no widespread pattern of engine failure linked to E20 has been reported since the rollout. It said E20 was cleared “only after extensive testing by SIAM, ARAI and IOCL together with vehicle makers”.

 

The government also cited Maruti Suzuki’s service data for 28.4 million vehicles in 2025-26. More than 15 million of these vehicles were over three years old and were, therefore, not E20-certified, but the company found no E20-related damage, it added.

 

Does ethanol reduce vehicle performance?

 

The government has also rejected the claim that ethanol is not a high-performance fuel.

 

“Ethanol is a high-octane fuel, with a research octane number of about 108.5, compared to 84.4 for petrol,” the government said. It said E20 raises the effective octane rating of Indian petrol to around 95, improving combustion in modern engines.

 

“Vehicles calibrated for E20 can deliver better acceleration, smoother performance, and lower emissions,” it said.

 

Are insurance companies rejecting E20-related claims?

 

The government cited insurers and original equipment manufacturers (OEMs), saying they had clarified that the use of E20 petrol has no impact on the validity of vehicle insurance or warranties in India.

 

It said SIAM has confirmed that warranties will be honoured for vehicles using E20 fuel that meets prescribed specifications.

 

If ethanol is cheaper, why are consumers not getting the benefit?

 

Addressing this claim, the statement said the NITI Aayog report cited for this argument is from 2020-21, when ethanol was indeed cheaper than petrol.

 

“Ethanol procurement costs have since risen above refined petrol costs, yet the mandate continues because of the energy security, environmental and farm income gains it delivers,” it said.

 

Did the government call E20 an ‘experiment’ in the Supreme Court?

 

The ministry clarified that the case was about ethanol procurement contracts, not E20’s merits. The Attorney General’s office clarified on June 30, 2026, that the claim was incorrect, according to the backgrounder. 

 

Is sugarcane juice poured directly into petrol?

 

The government refuted as “misleading” viral videos showing raw juice being mixed with petrol.

 

Ethanol is produced through fermentation and industrial processing that completely changes its properties, it said. The fuel must also meet prescribed quality specifications before it can be blended with petrol.

 

Does 1 litre of ethanol consume 10,000 litres of water?

 

The government rejected the claim that producing 1 litre of ethanol consumes 10,000 litres of water.

 

It said an ethanol plant uses only three to five litres of processed water per litre of ethanol produced, while modern distilleries operate zero liquid discharge systems.

 

The government said it was incorrect to attribute the entire agricultural water footprint of paddy cultivation to ethanol production. Only surplus rice, as determined and permitted by the Department of Food and Public Distribution (DFPD) after meeting national food security requirements, is diverted for ethanol production, it added.

 

Do ants and bees swarm fuel caps because E20 contains sugar?

 

The government clarified that fuel ethanol is distilled and residual sugars are eliminated during the process. “It contains insect-repellent denaturants, petrol's odour dominates, and E20 forms less vapour than regular petrol.” 

 

Will ethanol’s water-absorbing nature spoil fuel and ruin tanks?

 

Responding to concerns over ethanol’s water-absorbing nature, the government said keeping water out of fuel tanks is a basic requirement for all vehicles, regardless of whether the fuel contains ethanol.

 

Modern vehicles are equipped with design features and safeguards to prevent water from entering fuel tanks, it added.