Two-thirds of petrol vehicle owners oppose government's E20 fuel mandate

Survey highlights mileage drop and cost concerns among older vehicle owners; industry urges phased transition to higher ethanol blends

A majority of Indian petrol vehicle owners are opposing the government’s decision to mandate E20 petrol, fuel blended with 20 per cent ethanol, citing reduced mileage and increased running costs, according to a nationwide survey by LocalCircles.

 

What is E20 fuel?

E20 petrol is a blend of 20 per cent ethanol and 80 per cent petrol. Ethanol is an alcohol-based fuel typically derived from crops such as sugarcane. While it can help reduce greenhouse gas emissions and lower dependence on imported crude oil, in vehicles not designed for higher ethanol content, it may result in a 5–7 per cent reduction in fuel efficiency and potentially increase wear and tear.

   

Newer flex-fuel vehicles are designed to handle such blends, but most older vehicles in India are calibrated for E10 (10 per cent ethanol).

 

Petrol vehicle owners report reduced mileage

The LocalCircles survey, which gathered over 36,000 responses from petrol vehicle owners in 315 districts, found that two in three owners of vehicles purchased in 2022 or earlier reported lower fuel efficiency in 2025 compared to previous years.

 

Among vehicle owners surveyed, two in three with cars purchased in 2022 or earlier reported lower fuel efficiency in 2025 compared with previous years:

• 22 per cent saw mileage drop 15–20 per cent
• 22 per cent reported declines above 20 per cent
• 11 per cent saw a 10–15 per cent drop
• Smaller percentages reported lesser declines
• Only 11 per cent said there was no impact

 

Strong opposition to E20 mandate

When asked about the government’s decision to sell only E20 petrol:

• 44 per cent opposed it outright and wanted the policy revoked
• 22 per cent opposed it, but would support if multiple blend options (E5, E10, E20) were available with price incentives
• 12 per cent supported the current mandate
• 22 per cent gave no clear answer

 

Government’s ethanol blending targets

India’s National Policy on Biofuels (2018) was amended in 2022, which included moving the target for 20 per cent ethanol blending in petrol (E20) forward to the Ethanol Supply Year (ESY) 2025–26 from the earlier goal of 2030. 

 

Public Sector Oil Marketing Companies (OMCs) achieved 10 per cent blending in June 2022, five months ahead of schedule. Furthermore, they increased the blending rate to 12.06 per cent in ESY 2022–23, 14.60 per cent in ESY 2023–24, and 17.98 per cent by February 28, 2025, the petroleum ministry stated in March.

 

India achieved its target of 20 per cent ethanol blending in petrol earlier this year and is now preparing to raise the ratio to 27 per cent.

 

The Bureau of Indian Standards has been instructed to set norms for the new E27 blend, and the Automotive Research Association of India is researching engine modifications to enable its use. The government is also exploring biofuel blending in diesel, including a 10 per cent isobutanol blend.

 

Industry calls for a phased approach

Vehicle manufacturers, meanwhile, have cautioned that older models designed for E10 are not covered under warranty for E20 use and could be damaged if used over the long term, LocalCircles Survey said.

 

According to the Roadmap for Ethanol Blending in India (2020–25), using E20 petrol results in only a small drop in fuel efficiency for vehicles designed for E10 and calibrated for E20. With adjustments in engine hardware and tuning, this efficiency loss can be minimised. Tests have shown no major issues with vehicle performance, engine wear, or engine oil quality when using E20 fuel.

 

LocalCircles said it will share the survey’s findings with key government stakeholders, recommending that consumers be offered fuel blend options and that the shift to higher ethanol blends be gradual as more ethanol-ready vehicles enter the market.