No decision yet on petrol blending beyond 20% ethanol, Govt tells Parliament

The government has not taken a decision to raise ethanol blending in petrol beyond the existing 20 per cent mark, Minister of State for Petroleum and Natural Gas Suresh Gopi informed the Rajya Sabha on Monday. He added that any future increase would only follow scientific evaluations and consultations across the industry.

"So far, no decision has been taken by the government to increase ethanol blending with petrol beyond 20 per cent," Gopi stated in a written response to a query.

He emphasised that any further increase would come "only after detailed scientific and technical studies and consultations with all relevant stakeholders, including automobile manufacturers, Oil Marketing Companies and research institutions."

Gopi said that India achieved its 20 per cent blending target five years ahead of its timeline, with average blending rising from roughly 1.53 per cent in 2013-14 to 20 per cent in the 2025-26 supply year, following over two decades of phased rollout.

Since 2014-15, he noted, the initiative has saved over Rs 1.97 trillion in foreign exchange, replaced nearly 316 lakh tonnes of crude oil imports, prevented around 952 lakh tonnes of carbon dioxide emissions, and generated more than Rs 1.66 lakh crore in additional income for farmers.

Addressing vehicle performance concerns, the minister said the government has received no "widespread or substantiated complaints" from vehicle manufacturers, automobile associations or consumer groups over engine failure, fuel-pump problems, corrosion or water contamination linked to E20 fuel, though it had taken note of concerns raised in media and on social media and examined them scientifically.

Over 20 crore two-wheelers and more than 3 crore petrol car, including many manufactured prior to E20 certification, have run on E15-plus and E19-E20 blends for over three-and-a-half and two-and-a-half years respectively "without any verified evidence of widespread engine failure or vehicle breakdown," Gopi said.

He pointed to service data from a major four-wheeler maker covering 2.84 crore vehicles in 2025-26, including 1.5 crore non-E20-compliant vehicles, which revealed zero fuel-related damage, adding that a leading two-wheeler manufacturer reported similar findings.

Any decline in mileage for older vehicles designed for E10 is "generally marginal," ranging between 3 and 5 percent, whereas E20 provides a higher octane rating and cleaner combustion. Furthermore, automobile manufacturers continue to honour warranties for vehicles using compliant E20 fuel, he added.

On the question of food security, Gopi stated that the 20 percent blending target has not impacted food crop availability, as only excess food crop, allocated after meeting the Public Distribution System, National Food Security Act, and buffer stock requirements, are redirected for ethanol.

Rice allocated for ethanol production grew to 39.28 lakh tonnes in 2025-26 through June 30, up from 31.11 lakh tonnes in 2024-25, while maize diversion dropped to 67.87 lakh tonnes in the same period from 131.18 lakh tonnes in 2024-25.

He stated that retail price inflation for sugar and rice remained unaffected, terming the initiative a "waste-to-wealth" strategy.

Regarding water use, Gopi replied that government’s policy guidelines prioritise water sustainability by diversifying feedstocks beyond sugarcane to include crops like maize, whose share in ethanol output climbed to nearly 37 percent in 2025-26 from zero in 2021-22.

Ethanol manufacturing facilities typically use 3-5 litres of processed water per litre of ethanol produced, and distilleries are mandated to function as zero-liquid-discharge units.

State-owned oil marketing companies purchased 705.43 crore litres of ethanol valued at Rs 49,577 crore in 2025-26 through June, following 1,033.31 crore litres worth Rs 73,996 crore in 2024-25 and 679.04 crore litres worth Rs 48,757 crore in 2023-24, Gopi said, adding that 501 ethanol suppliers are currently registered with these OMC firms.

Lastly, Gopi clarified that there is no proposal to mandate the sale of non-blended or lower-blend petrol at selected pumps, as operating parallel supply chains would inflate operational costs and dilute the programme’s ecological and agrarian benefits.

"There is no proposal to mandate the availability of non-blended or lower-blend petrol at select retail outlets. The Government's policy is to progressively transition towards cleaner, technologically superior and environmentally sustainable fuels in accordance with the National Policy on Biofuels and the Ethanol Blended Petrol (EBP) Programme," he said.