
As discussions around E20 petrol continue, the government has clarified its impact on vehicle performance and fuel economy. In a written reply in the Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi stated that certain older vehicles designed for E10 fuel may experience a 3-5% reduction in mileage.
However, the government said there is no verified evidence of widespread engine damage or vehicle breakdowns due to ethanol blending. It also highlighted the broader progress of India's Ethanol Blended Petrol (EBP) Programme.
The government informed Parliament that some older vehicles designed for E10 fuel may witness a fuel economy reduction of around 3-5% when using E20 petrol. At the same time, it noted that mileage is influenced by several factors beyond fuel composition.
Driving habits, road conditions, tyre pressure, vehicle servicing and air-conditioner usage can all affect fuel efficiency. As a result, fuel type is only one of many variables that determine overall mileage performance.
According to the government, E20 petrol offers several technical advantages despite the potential mileage impact in certain vehicles. These benefits include a higher octane rating, improved anti-knock properties, cleaner combustion and smoother engine operation.
The ministry indicated that these characteristics support efficient engine performance and reduced emissions. The transition to E20 has therefore been positioned as part of a wider strategy to improve fuel quality and reduce dependency on fossil fuels.
The government stated that more than 20 crore two-wheelers and over 3 crore petrol cars have been operating on E15+ and E19-E20 fuel blends. This vehicle base includes a significant number of automobiles manufactured before E20 certification standards were introduced.
According to the ministry, there is no verified evidence of widespread engine failure or vehicle breakdown attributable to ethanol blending. It further noted that vehicle manufacturers continue to honour warranty obligations for vehicles using specification-compliant E20 fuel.
The ministry cited industry data to support its position on E20 usage. A leading four-wheeler manufacturer serviced 2.84 crore vehicles during FY2025-26, including 1.5 crore non-E20-certified vehicles, without reporting damage linked to E20 fuel.
A major two-wheeler manufacturer also reported no higher incidence of damage among vehicles using E20 compared with earlier fuel blends. Meanwhile, ethanol blending in petrol increased from 1.53% in 2013-14 to 20% during November 2025-June 2026, reflecting a phased implementation approach.
Read More: Government Has No Plans to Increase Ethanol Blending in Petrol Beyond 20%, Says Centre.
Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.
The government has clarified that while E20 petrol may reduce fuel economy by 3-5% in some older E10-designed vehicles, it has found no verified evidence of widespread engine damage linked to ethanol blending. It also stated that there is currently no proposal to increase ethanol blending beyond 20%.
Additionally, there are no plans to mandate separate supplies of non-blended or lower-blend petrol at fuel stations. The government said any future policy changes would be based on scientific studies and consultations with stakeholders across the automotive and energy sectors.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 22, 2026, 12:54 PM IST

Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
