No decision yet on petrol blending beyond 20% ethanol, says minister

Minister of State for Petroleum and Natural Gas Suresh Gopi informed the Rajya Sabha on Monday (July 20, 2026) that the government has not yet made a decision to increase ethanol blending in petrol beyond the current 20% level. The minister stated that any potential increase would require further scientific study and consultation with industry stakeholders, including automobile manufacturers, oil marketing companies, and research institutions. The ethanol blending program in India has achieved its 20% target five years earlier than planned, according to the minister. Average blending levels rose from approximately 1.53% in the fiscal year 2013-14 to 20% in the 2025-26 supply year, following a gradual implementation process spanning over two decades. Since the program began in 2014-15, it has reportedly saved over 1.97 trillion rupees in foreign exchange, displaced nearly 316 million tonnes of crude oil, and prevented approximately 952 million tonnes of carbon dioxide emissions. Additionally, the initiative has contributed more than ₹1.66 lakh crore in extra income for farmers. The minister noted that the government has not received widespread or substantiated complaints from vehicle manufacturers, automobile associations, or consumer groups regarding issues such as engine failure, fuel pump malfunctions, corrosion, or water contamination related to E20 fuel. While concerns raised in the media and on social platforms were acknowledged, they were evaluated through scientific analysis. Over 20 crore two-wheelers and more than 3 crore petrol-powered cars, many of which were manufactured before E20 certification, have operated on E15-plus and E19-E20 fuels for extended periods. Specifically, these vehicles have run on the blends for over three-and-a-half and two-and-a-half years, respectively, without documented evidence of widespread engine failures or vehicle breakdowns. The minister cited service data from a major four-wheeler manufacturer, covering 2.84 crore vehicles in 2025-26, including 1.5 crore non-E20-certified models, which showed no damage associated with the fuel. A leading two-wheeler producer also reported similar results. The minister explained that any reduction in fuel efficiency for older, E10-designated vehicles is generally minor, ranging from 3% to 5%. In contrast, E20 provides higher octane and promotes cleaner combustion. Furthermore, vehicle manufacturers continue to honor warranties on vehicles operating on compliant E20 fuel. Regarding food security, the minister emphasized that the 20% blending target has not impacted the availability of food crops. Only surplus grains, after fulfilling requirements under the Public Distribution System, National Food Security Act, and buffer stock, are utilized for ethanol production. Data shows that rice diverted for ethanol increased to 39.28 lakh tonnes in 2025-26 compared to 31.11 lakh tonnes in 2024-25. Meanwhile, maize usage for ethanol production dropped to 67.87 lakh tonnes from 131.18 lakh tonnes during the same period. The minister also addressed water usage, stating that the government’s strategy aims to ensure water sustainability. Feedstock diversity has expanded beyond sugarcane, with maize contributing about 37% to ethanol production in 2025-26, up from zero in 2021-22. Ethanol plants typically consume 3-5 litres of treated water per litre of ethanol produced, and distilleries are mandated to operate as zero-liquid-discharge facilities. State-owned oil marketing companies purchased 705.43 crore litres of ethanol valued at ₹49,577 crore in 2025-26, following procurement of 1,033.31 crore litres worth ₹73,996 crore in 2024-25 and 679.04 crore litres worth ₹48,757 crore in 2023-24. Currently, 501 ethanol suppliers are registered with these companies. The minister clarified that there is no proposal to mandate lower-blend or non-blended petrol at specific outlets, as this could lead to increased operational costs and undermine the environmental and economic advantages of the ethanol blending program.