E20 petrol is safe but can lower mileage, acceleration: Mahindra Auto CEO

Transport minister Nitin Gadkari, however, on Wednesday said that concerns about E20 are being fuelled by the petroleum lobby

As India rolls out 20 per cent ethanol-blended fuel (E20) across 90,000 fuel stations, a senior Mahindra executive on Thursday said that the blend is safe to use but can cause a reduction in mileage and acceleration, reported Reuters.

 

Nalinikanth Gollagunta, chief executive officer (CEO) of Mahindra's automotive division, said that the firm is working on an advisory about the same and will send it to customers next week.

 

Last month, the automakers' group, the Society of Indian Automobile Manufacturers (Siam), also said that using E20 fuel in older vehicles lowers mileage but is not a safety risk.

   

The remark adds to the debate about problems caused by E20 fuel, which India introduced in 2023 in a bid to reduce dependence on fossil fuels, and achieved the target to roll it out in most of the stations across the country, making it the only available choice for car owners.

 

However, many customers have reported concerns about the blended fuel, claiming that it reduces mileage, damages engine parts, and increases maintenance and replacement costs. 

Petroleum lobby is against E20 rollout: Transport Minister

 

Mahindra’s remark follows Union Road Transport and Highways Minister Nitin Gadkari’s comments a day earlier, where he blamed the petroleum lobby for fueling concerns around the government’s push for E20 fuel.

 

He also defended E20 as both climate- and cost-friendly, noting that India spends nearly ₹22 trillion each year on importing more polluting fossil fuels.

E20 petrol hits the target, diesel blending struggles

 

While India's plans of ethanol blending with petrol is advancing smoothly, the path to 5 per cent biodiesel blending with diesel by 2030 remains fraught with challenges.

 

An India Ratings (Ind-Ra) report released a few months ago showed that India’s biodiesel blending rate stood at just 0.60 per cent in the financial year 2024 (FY25), far short of the target and deadline, mainly due to low investment and difficulties in collecting used cooking oil (UCO).