Government plans to increase ethanol share in gasoline to E25 by 2029

The Ministry of Petroleum and Natural Gas issued a statement on Sunday to address numerous claims and concerns circulating on social media regarding the use of E20 gasoline. These concerns relate to loss of range, potential engine damage, insurance, fuel prices, and water consumption.

Answers to Main Claims Against E20

The government rejected the widespread assertion that E20 gasoline leads to a 30 percent reduction in fuel consumption. Authorities explained that the 30 percent figure refers exclusively to the lower calorific value of ethanol compared to gasoline, not to an actual drop in range under normal operating conditions. They emphasized that fuel consumption depends much more on driving style, tire pressure, maintenance, and air conditioning load than on the type of fuel.

Citing data from Maruti Suzuki, the government stated that the actual impact on consumption is significantly smaller. According to the company's data, for a vehicle consuming 20 km per liter, the reduction may be around 0.6 km per liter.

Engine Damage Concerns

According to the official statement, no widespread pattern of engine failures related to this fuel has been registered since the introduction of E20. It was noted that E20 was approved only after comprehensive tests conducted jointly by SIAM, ARAI, and IOCL with vehicle manufacturers.

Furthermore, the government presented Maruti Suzuki's service data for 2025–2026 across 28.4 million vehicles. More than 15 million of these were older than three years and therefore lacked E20 certification, yet the company found no damage related to E20.

Performance and Insurance

The government also refuted the claim that ethanol is not a high-performance fuel. It was pointed out that ethanol has a high octane rating of about 108.5, compared to 84.4 for gasoline. The introduction of E20 increases the effective octane rating of gasoline in India to approximately 95, which improves combustion in modern engines. It was stated that vehicles tuned for E20 can provide better dynamics, smoother operation, and lower emissions.

Regarding insurance issues, the government referred to insurers and Original Equipment Manufacturers (OEMs), who clarified that using E20 gasoline does not affect the validity of the insurance policy or warranty obligations in India. SIAM confirmed that warranties will be honored for vehicles using E20 fuel that meets established specifications.

Economy and Ecology

Concerning the question of why consumers do not benefit if ethanol is cheaper, the statement indicated that the NITI Aayog report used as an argument dates back to the 2020–2021 period, when ethanol was indeed cheaper than gasoline. The government noted that the cost of procuring ethanol has since exceeded the cost of refined gasoline, but the mandate remains due to advantages in energy security, ecology, and farmer income.

The Ministry clarified that the lawsuit concerned contracts for ethanol procurement, not the merits of E20. The legal department clarified on June 30, 2026, that this assertion is incorrect.

Production Process and Safety

The government labeled viral videos showing raw juice being mixed with gasoline as 'misleading.' It was explained that ethanol is produced through fermentation and industrial processing, which completely alters its properties. The fuel must also meet established quality standards before being blended with gasoline.

Regarding the claim of consuming 10,000 liters of water per liter of ethanol, the government rejected this information. It was stated that an ethanol plant uses only three to five liters of treated water per liter of ethanol produced, and modern distilleries operate on zero liquid discharge systems. It was also noted that it is incorrect to attribute the entire agricultural water footprint of rice cultivation to ethanol production; only surplus rice, specified and permitted by the Department of Food and Public Distribution (DFPD) after meeting national food security requirements, is directed towards ethanol production.

In response to concerns that E20 might spoil fuel due to ethanol's hygroscopic properties, the government reminded that preventing water ingress into tanks is a basic requirement for all vehicles, regardless of fuel composition. Modern cars are equipped with structural features and protections to prevent water from entering fuel tanks.

Following the appearance of E20 gasoline, there is active discussion on social media that using this fuel leads to reduced fuel consumption and increased maintenance costs. However, the government denies these problems.

Official and Expert Stance

Recently, the central Minister of Petroleum, Hardeep Singh Puri, stated that while a slight decrease in fuel consumption may occur when using E20 gasoline, the situation does not match what is portrayed on social media.

Vikram Gulati, head of Toyota Kirloskar Motor and Executive Vice President for Corporate Affairs and Management, shared his opinion. He noted that all vehicles sold after 2023 comply with E20 requirements. Vehicles manufactured before 2023 can also run on E20 fuel without serious complications.

Impact on Vehicle Characteristics

Gulati clarified that according to studies, using E20 fuel may cause a slight reduction in fuel consumption, amounting to about 4-5 percent. The reason for this is that the energy value (energy composition) of ethanol is lower than that of gasoline, which leads to decreased consumption. Nevertheless, this does not negatively affect the vehicle's operating characteristics; on the contrary, acceleration may improve because ethanol has a high octane number, which contributes to more efficient engine operation.

He added that pure ethanol fuel is used even in Formula 1 races, so it cannot be claimed that E20 degrades vehicle performance. In fact, an improvement in terms of acceleration, torque, and overall performance can be expected.

ARAI Study Results

Dr. Raji Matai, Director of the Automotive Research Association of India (ARAI), reported that the study on the impact of E20 was conducted jointly with automakers to assess its effect compared to E10 fuel. He emphasized that manufacturers know their vehicles best.

Matai confirmed that the caloric value of ethanol as fuel is slightly lower than that of gasoline, so the caloric value of the E20 mixture is also somewhat reduced. Fuel consumption assessment was performed in a controlled environment: during tests, the temperature was kept constant, and the vehicles moved on rollers (dynamometers) for precise measurement of the effect caused only by the fuel.

During the testing conducted with automakers, vehicles of different ages were used—some were approximately 10 years old, others around 8 years old, and third ones were 3-4 years old. The results showed that when using E20 fuel, fuel consumption in these vehicles decreased by a margin of 2 to 6 percent.