E20 fuel hits mileage of older petrol vehicles; 8 in 10 report drop: Survey

A LocalCircles survey found that 52 per cent of petrol vehicle owners with cars bought in 2022 or earlier faced unusual wear and tear or repairs in 2025, affecting engines, tanks and carburetors

The nationwide rollout of E20 petrol, which contains 20% ethanol, is turning out to be a costly change for many vehicle owners in India. A new survey by LocalCircles shows that E20 fuel is not only reducing mileage but also increasing maintenance costs for older petrol vehicles.

 

According to the survey, 8 in 10 petrol vehicle owners with a vehicle purchased in 2022 or earlier said their vehicle’s fuel efficiency had dropped in 2025. The share of such owners reporting reduced mileage has risen sharply, from 67 per cent in August to 80 per cent in October.

 

The LocalCircles survey received over 36,000 responses from petrol vehicle owners across 323 districts in India. Of the respondents, 69 per cent were men and 31 per cent were women. About 45 per cent were from Tier-I cities, 27 per cent from Tier-II and 28 per cent from smaller towns and rural areas.   

   

Mileage complaints on the rise

 

Since E20 fuel became mandatory across India in April 2025, complaints about mileage and performance have been on a rise. Vehicle owners, especially those with cars or two-wheelers bought before 2023, say their fuel consumption has increased even though the government maintains that E20 is safe for all vehicles.

 

Many users have shared their experiences online, from cars refusing to start to costly engine repairs blamed on ethanol-blended fuel. In one case, a luxury car owner in Chennai reported spending nearly ₹4 lakh on repairs after the vehicle’s engine failed due to water contamination caused by E20. Mechanics across cities have also reported a 40 per cent rise in fuel-related problems since April.

 

Older vehicles face higher wear and tear

 

It is not just about lower mileage. The survey also highlights that 52 per cent of petrol vehicle owners (with vehicles bought in 2022 or earlier) are facing unusual levels of wear and tear or repair needs in 2025, which is affecting key parts such as the engine, fuel line, tank and carburetor. This figure has nearly doubled from 28 per cent in August to 52 per cent in October.

 

These numbers suggest that as older vehicles continue to use E20, their components may be degrading faster than expected. Mechanics have reported issues like fuel injector failures, misfiring in two-wheelers and premature rusting in tanks.   

 

Owners demand flexibility

 

While the government has defended the E20 rollout as a step toward cleaner energy and better returns for farmers, many owners feel the change has hurt middle-class consumers who still rely on older vehicles.

 

In earlier LocalCircles findings, over half the respondents said they would support E20 fuel only if it was optional and sold at a 20 per cent lower price.

 

Ethanol use growing worldwide

 

Globally, ethanol blending is promoted to cut fossil fuel use and emissions. As of 2024, ethanol blending makes up around 5-6 per cent of global transportation fuel use. The ethanol market, valued at about $98.5 billion in 2024, is expected to more than double to $205.2 billion by 2035, growing at an annual rate of 6.9 per cent. This growth is mainly supported by government mandates and incentives promoting cleaner fuels.

 

Most ethanol policies worldwide focus on mixing ethanol with petrol to cut down fossil fuel use, lower emissions and strengthen energy security. These rules differ across regions. The United States and Brazil lead the way, together producing about 80 per cent of the world’s ethanol. More than 30 countries have blending mandates or goals, usually starting at E5 (5 per cent ethanol) and going up to E10-E27.