Using E20 petrol in old vehicles? Maintenance costs may rise up to ₹10,000
India's ethanol shift promises lower imports and support for farmers, but older vehicles and the informal repair network may carry the first consumer-level costs in coming years
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The warning comes as the government pushes ethanol-blended fuel and flex-fuel vehicles in mission mode, arguing that the shift will reduce crude oil imports, raise farmers’ income and lower pollution
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Using E20 petrol will not make an old car or two-wheeler stop immediately. But for vehicles not designed for fuel containing up to 20 per cent ethanol, the consequence could show up gradually: lower mileage, faster wear in fuel-system parts, and higher workshop bills.
Vinkesh Gulati, chairperson of the Automotive Skills Development Council and former president of the Federation of Automobile Dealers Associations, says the additional expense could be ₹500 to ₹2,500 for two-wheeler owners and ₹5,000-10,000 for four-wheeler owners. The warning comes as the government pushes ethanol-blended fuel and flex-fuel vehicles in mission mode, arguing that the shift will reduce crude oil imports, raise farmers’ income and lower pollution.
Where can E20 hurt older vehicles?
The issue begins with the fuel system. Petrol and ethanol differ in density and viscosity, and these physical properties affect engine performance, fuel consumption and the life of vehicle components. Gulati says: “The biggest impact of E20 petrol is on the fuel system.” The system that carries fuel from the tank to the engine includes rubber pipes, gaskets, seals, bearings and several other components. Older vehicles were not designed with the assumption that fuel containing up to 20 per cent ethanol would be used in the future. The materials used in those vehicles, therefore, may not be fully suited for E20 petrol.
Why does the cost become a household issue?
Gulati explains fuel efficiency in older vehicles may decline by 3-7 per cent in most cases, while in some cases the fall could be as high as 10 per cent. Some parts that were earlier replaced once a year may need to be changed every six months. Older fuel systems may also become more vulnerable to corrosion, requiring replacement of some parts. This is not only a technical concern; it is a running-cost concern for households that use older vehicles because they cannot afford quick replacement. In a recent survey, 52 per cent of older petrol vehicle owners said they had incurred additional expenditure of ₹5,000 or more because of reduced fuel efficiency or increased repairs, and 20 per cent reported spending between ₹5,000 and ₹10,000 extra.
Are mechanics ready for the transition?
The bigger challenge may lie outside the vehicle. Older cars and two-wheelers are usually not taken to authorised service centres; they are mostly repaired by local or roadside mechanics. Gulati says the key question is who will train these mechanics to identify and fix problems linked to ethanol-blended fuel. A large number of mechanics still work independently and may not have access to formal training or online courses. Institutions such as the Automotive Skills Development Council are running training programmes on Bharat Stage-IV, Bharat Stage-VI and E20 technologies, but Gulati says much more needs to be done. “If the technician does not have the right information, even a small problem can become a bigger fault.” For instance, a 15-year-old two-wheeler may be worth only ₹10,000-15,000 today. If poor diagnosis or wrong repair advice leads to replacement of parts worth ₹10,000, it would be a major burden for the owner.
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How far beyond E20 is the policy moving?
New vehicles being sold in the market are E20-compliant, says Gulati. If a vehicle is E20-compliant, blends such as E23, E27 or E30 are unlikely to cause major problems under normal conditions. The government is already preparing for higher blends: As reported earlier, the Centre has exempted petrol containing 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol from central excise duty. But Gulati warns that E20 should not be confused with E85. E85, which contains 85 per cent ethanol and 15 per cent petrol, requires a different fuel system, engine design and specialised components. Using E85 in an E20-compliant vehicle could lead to serious technical problems.
What does the government gain?
The government says the ethanol blending programme has delivered multiple benefits. According to Petroleum and Natural Gas Minister Hardeep Singh Puri, since FY15, India has saved ₹1.84 trillion in foreign exchange because of ethanol blending. It has also reduced crude oil import requirement by 30.2 million tonnes and cut carbon emissions by 90.9 million tonnes. Farmers have earned an additional ₹1.58 trillion, he said recently. If flex-fuel vehicles account for just 1 per cent of new petrol vehicle sales in FY27, the minister said, it would create additional demand for 40 million litres of ethanol.
The ethanol transition is, therefore, not only a fuel policy. It is also a consumer-readiness test. India may save foreign exchange and create a new market for farm-linked fuel, but the shift will be judged at the level of the owner who sees mileage fall, the mechanic who must diagnose the problem, and the vehicle that was built for an earlier fuel regime.
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First Published: Jun 22 2026 | 12:11 PM IST
