By Admin 
Govt on Ethanol Petrol: Amidst the questions being raised across the country regarding petrol containing E20 i.e. 20 percent ethanol, the Petroleum Ministry has presented the government’s side. In this, answers have been given to those questions which common car owners have been asking for the last several months. Like is E20 expensive, why pure petrol is not available? What will happen to old vehicles and why is the government so adamant on this policy?
Interestingly, the government has admitted for the first time that if the price of crude oil in the international market is around $70 per barrel, then producing E20 may be costlier than pure petrol. Despite this, the government says that the purpose of ethanol blending is not only to make petrol cheaper but also to make India less dependent on foreign oil.
E20 becomes expensive at $70 crude
According to the ministry, ethanol made from corn is purchased for about Rs 71.86 per liter. Apart from this, the cost of GST, transport and storage is also added. In such a situation, when crude remains around $70, the cost of E20 may be higher than normal petrol.
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However, the government claims that if crude reaches 120 to 130 dollars per barrel in the future, then this E20 will prove to be a cheaper option for India and will reduce the pressure on petrol prices.
Then why will pure petrol not be available?
This is the biggest question, to which the Ministry has answered in detail. The government says that there are more than one lakh petrol pumps across the country. If pure petrol, E10 and E20 are made available separately at every pump, then the entire supply chain will become very complex and expensive.
The government also clarified that premium petrol cannot be compared with E10 or pure petrol, because premium petrol is not prepared from a different base fuel but by mixing different additives in the same petrol.
It is not easy to go back now!
The ministry has given another important reason. According to the government, in the last few years, public sector banks have given loans worth about Rs 1 lakh crore every year for ethanol plants, distilleries and storage infrastructure. The government says that if we move away from E20 and go back to E10 or pure petrol, then huge investments of farmers, industries and banks may be affected.
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Why did the government say E20 is necessary?
According to the ministry, the biggest advantage of E20 is that about 20 percent of every liter of petrol sold in the country is now desi ethanol. This means that one-fifth of the tank does not depend on the foreign oil market, war or shipping crisis. The government claims that this provides India some protection from international oil price shocks.
Example of Pakistan, Sri Lanka and Bangladesh
The government has also given figures from neighboring countries in its favor. According to PPAC, between June 2022 and June 2026…
- Petrol became costlier by about 40% in Pakistan.
- There was about 43% increase in Bangladesh.
- There was approximately 37% increase in Sri Lanka.
- Whereas in Delhi the price of petrol increased only 5.58% during the same period.
The government also claims that during the West Asia crisis, petrol in Pakistan became costlier by more than 50 percent in March-June 2026, while in India the increase was 7.76 percent.
Will old vehicles be damaged?
The biggest concern regarding E20 has been regarding old vehicles. The ministry has rejected these apprehensions. The government says that before implementing E20, more than 40 thousand kilometers of scientific testing was done.
According to the ministry, Maruti Suzuki serviced 2.84 crore vehicles in the financial year 2025-26, of which about 1.5 crore were vehicles which were not E20 certified, but no widespread complaints like damage to rubber parts, rust or engine damage were reported. The government has reported a similar experience of Hero MotoCorp.
What did the government consider on mileage?
The government has admitted that the mileage of some vehicles may be reduced by 3 to 5 percent, but the ministry says that due to the higher octane rating of E20, the performance of the engine remains better and in terms of lifecycle, carbon emissions are reduced by about 40 percent.
What said on vehicles written E10?
Many vehicle owners complain that only E10 is written in the manual of their car or bike. On this, the government says that the manual is according to the fuel standard of the time when the vehicle got certification. If the fuel standard of the country has changed later, then it does not mean that the vehicle automatically becomes unsafe.
How much benefit to farmers?
According to the government, till now the ethanol blending program…
- Foreign exchange worth Rs 1.97 lakh crore was saved.
- Import of crude oil reduced by 316 lakh tonnes.
- 952 lakh tonnes carbon emissions reduced.
- More than Rs 1.66 lakh crore was paid to the farmers.
The government says that the ethanol program has made farmers not only food providers but also “energy providers”.
How did India reach 20% blending?
According to the ministry, ethanol blending has continuously increased…
- 2020-21: 8.1%
- 2021-22: 10%
- 2022-23: 12.1%
- 2023-24: 14.6%
- 2024-25: 19.2%
- Between November 2025 and June 2026: 20%
The government says that this change is not sudden but is the result of two decades of planning.
government message
The ministry has clarified that the E20 policy will continue and there are currently no plans to make pure petrol or E10 available as a separate option. Also, instructions have been given to the states to take action with zero tolerance on any complaint related to petrol adulteration or fuel quality.