The Indian government has made the sale of petrol blended with 20% ethanol known as E20 compulsory across all states and Union Territories from 1 April 2026.
The Ministry of Petroleum and Natural Gas issued the directive on 17 February, ordering oil companies to sell ethanol-blended petrol containing up to 20% ethanol, as per Bureau of Indian Standards specifications, with a minimum Research Octane Number (RON) of 95.
The mandate, covering every petrol pump in the country, aims to slash crude oil imports, cut vehicular emissions, and bolster farmers’ incomes by increasing domestic demand for sugarcane and maize. The government has kept the option open to grant temporary exemptions for specific regions in special situations.
While the ethanol industry has cheered the move, millions of motorists driving older vehicles particularly those manufactured before April 2023 have been vocal about rising repair costs and falling fuel efficiency, concerns the government has sought to address but not fully resolved.
Greener at the Pump, Stronger for the Exchequer
E20 fuel was first introduced at select outlets in April 2023 before a nationwide rollout from April 2025, and most petrol stations across India now offer the blended fuel. The financial and environmental case for the transition is compelling.
According to the Ministry of Petroleum and Natural Gas, India has saved over ₹1.40 lakh crore in foreign exchange since 2014–15 through petrol substitution with ethanol, and the shift to E20 alone helped save around $5 billion last year. The programme is also expected to add approximately $4.6 billion to farmers’ incomes annually. On the environmental front, a lifecycle emissions study by NITI Aayog found that ethanol derived from sugarcane and maize cuts greenhouse gas emissions by roughly 65% and 50%, respectively, compared to pure petrol.
The RON 95 minimum has been set to ensure engine protection currently, regular petrol in India is rated at RON 91, so the mandate effectively raises the quality floor for every motorist in the country, with ethanol’s natural octane rating of around 108 helping to achieve this without extra cost. Union Minister Nitin Gadkari also stated in Parliament that the Ethanol Blending Programme has resulted in a reduction of approximately 790 lakh metric tonnes of net COâ‚‚ and substitution of more than 260 lakh metric tonnes of crude oil.
Older Vehicles Bear the Brunt as Debate Heats Up
The transition has not been without friction. A survey by LocalCircles found that 52% of petrol vehicle owners with vehicles purchased in 2022 or earlier reported unusual levels of deterioration or repair needs in 2025, affecting key components including the engine, fuel line, tank, and carburettor, a figure that nearly doubled from 28% in August to 52% in October.
Older vehicles built before 2023 may face issues because ethanol is hygroscopic, it absorbs moisture and can be corrosive to certain rubber gaskets, plastic hoses, and older metal fuel tanks, with efficiency dropping by 3% to 7%. Responding to mounting pressure in Parliament, Minister Gadkari said: “Based on the recommendation of the study conducted by ARAI, IOCL, and SIAM, there would be no requirement for a phase out or retrofit of non-compliant vehicles and the normal wear and tear can be managed during routine servicing.”
He also confirmed that the government is not considering establishing a compensation fund for E20-related vehicle damage, citing a lack of evidence for widespread component failure. However, Gadkari has also acknowledged some mileage reduction, stating that blended fuel does not damage the engine or powertrain components even while admitting a drop in fuel economy: a position critics have described as contradictory.
Gadkari has also blamed the “petroleum lobby” for spreading misinformation about E20, insisting that government-conducted trials on older cars have “verified everything on technical grounds.” India’s ethanol story traces back to 2003, when the Ethanol Blending Programme was first launched; the government advanced the E20 target from 2030 to 2025–26 after achieving 10% blending in June 2022, five months ahead of schedule.
The Logical Indian’s Perspective
India’s push towards E20 petrol is, at its heart, a bold and necessary step one that weaves together environmental responsibility, energy security, and rural economic uplift into a single policy. The vision is admirable: a country that powers its growth with crops grown by its own farmers, reduces its dependence on imported oil, and breathes cleaner air in its cities.
Yet the rollout has exposed a tension that policymakers cannot afford to ignore. When over half of older vehicle owners report rising repair bills and falling mileage, and a minister acknowledges a mileage drop in the same breath as declaring no damage, public trust begins to fray.
The daily commuter on a decade-old two-wheeler or the small trader running an ageing hatchback. Transparent, proactive communication from the government and automobile manufacturers, affordable servicing support for older vehicles, and genuine independent testing rather than industry-led studies, is expected. India’s green ambitions deserve to be met with the same equity and empathy it asks of its citizens.
Also Read: 300 Students Boycott Exams After 40 Barred Over Overnight Party At IIM Nagpur, Ban Later Revoked
