Nitin Gadkari Blames 'Rich Petrol Lobby' For E20 Backlash, Eyes Methanol As Alternative Fuel

(MENAFN- Live Mint) Union Minister Nitin Gadkari reacted to the growing concern on social media about ethanol-blended fuel called E20, saying that the petroleum sector is lobbying against this move. "Everywhere there are lobbies, there are interests...petrol lobby is very rich," he said on Wednesday.

Gadkari's statement came amid outrage over the government's move to blend petrol with 20 per cent ethanol as a national programme - aimed at cutting emissions and raising the income of farmers.

E20 is petrol blended with 20% ethanol, an alcohol mainly produced from sugarcane and grains such as maize and rice.

It was introduced at a few pumps in April 2023 and has been rolled out across India since April 2025, replacing the 10% ethanol fuel, called E10, that most cars are designed to use.

Currently, Indian vehicles can run on E20 petrol with minor changes to the engine to prevent corrosion and other issues, news agency PTI reported.

India is currently the world's third-largest oil consumer and imports about 88 per cent of its crude oil requirements, making it vulnerable to geopolitical vagaries that can impact crude prices.

Debate over impact of E20 fuel

There has been a debate on social media over the impact of E20 fuel on vehicles. According to PTI, automotive industry experts had pointed out that the usage of 20 per cent ethanol-blended petrol in vehicles could lead to a 2-5 per cent drop in fuel efficiency, depending on the type of cars.

They had also noted that in older vehicles, which are not E20 compliant, there could be erosion of gaskets, fuel rubber hoses and pipes in the long term, but not immediately.

"There can be a drop in mileage ranging from 2-5 per cent, depending on the type of vehicle. This is purely because of the lower calorific value of ethanol compared to petrol," said an expert requesting anonymity.

But the Oil Ministry had earlier clarified that "the critiques suggest that E20 causes a 'drastic' reduction in fuel efficiency are misplaced". However, it did not state the percentage drop in fuel efficiency.

"The efficiency drop [if any] in E10 vehicles has been marginal. For some manufacturers, vehicles have been E20 compatible from as far back as 2009. The question of any drop in fuel efficiency in such vehicles does not arise," the ministry had said.

On August 4, the ministry, in a post on X, said: "Ethanol, being lower in energy density than petrol, results in a marginal decrease in mileage, estimated at 1-2 per cent for four-wheelers designed for E10 and calibrated for E20, and around 3-6 per cent in others".

Gadkari eyes methanol as alternative fuel

Union Minister for Road Transport and Highways Nitin Gadkari, on Wednesday, highlighted experiments being done with ethanol and isobutanol, while emphasising that India needs to reduce its dependence on imported fuels by adopting alternative fuels, including biofuels, hydrogen and electric mobility.

"We have an import of 22 lakh crore. Is it not appropriate that we have to make in India with our own strength? And with our own capabilities, there should be no import. We can stand on our own strength. So we are working on that," Gadkari said at the 7th Auto Retail Conclave of FADA.

"We want to concentrate on alternative fuel, biofuel, hydrogen, electric, whatever the choice may be, even in the marine engine. Now we are planning to use methanol," Gadkari said.

(With inputs from PTI)

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