Nationwide Shift To E20 Petrol Expected To Cut Oil Imports, Raises Consumer Concerns

(MENAFN- KNN India) New Delhi, Sep 8 (KNN) The Indian government's nationwide rollout of ethanol-blended petrol, known as E20, has triggered concern among vehicle owners in the world's third-largest auto market.

E20, which contains 20 per cent ethanol mixed with petrol, was first introduced at select stations in April 2023 and expanded nationwide in April 2025.

It replaces the earlier E10 blend (10 per cent ethanol), which most cars and two-wheelers were originally designed to run on.

With older blends like E5 and E10 being phased out, consumers now have no option but to use E20.

The government argues that the switch will cut oil imports by USD 5 billion this year and add nearly USD 4.6 billion to farmers' incomes, as ethanol is produced mainly fr0m sugarcane, rice, and maize.

Officials also highlight environmental benefits, calling the fuel cleaner than traditional petrol.

However, many motorists fear E20 could damage older vehicles, particularly as most manuals only recommend E5 or E10. The lack of alternative blends at India's 90,000 fuel pumps has deepened frustration.

Although the auto industry has assured that warranties and insurance claims will remain valid, drivers remain uneasy about potential wear and tear.

Industry groups admit that fuel efficiency drops by 2–4 per cent with E20, with a higher impact on older vehicles. The government has countered that only minor replacements of rubber parts and gaskets may be required, calling it a“simple process.”

This stance marks a shift fr0m the industry's 2020 position, when automakers had urged the government to provide both E10 and E20, citing the complexity of upgrading older vehicles.

The biggest beneficiaries of the rollout are sugar mills, distilleries, and ethanol producers such as Bajaj Hindusthan Sugar, Balrampur Chini Mills, Shree Renuka Sugars, Praj Industries, and CIAN Agro.

State-run oil companies like IOC, BPCL, and HPCL also stand to gain fr0m reduced crude imports.

(KNN Bureau)

MENAFN08092025000155011030ID1110032647