Government denies that ethanol-blended petrol will reduce your vehicle’s mileage

Amid the ongoing debate regarding ethanol blending, Petroleum and Natural Gas Minister Hardeep Singh Puri has made a significant statement. He noted that ethanol is being successfully used in racing cars and helps enhance vehicle speed and performance. He stated that the government’s biofuel policy was formulated with energy security, farmers’ income, and environmental conservation in mind.

Ethanol proving successful in racing cars

Hardeep Singh Puri stated that the use of ethanol in racing cars is yielding positive results. According to him, this biofuel is proving helpful in boosting engine capacity and improving overall performance. The Minister mentioned that the government is moving forward with a policy for higher levels of biofuel blending. He pointed out that the ongoing conflict in the Middle East has caused significant volatility in crude oil prices in the international market. This has directly impacted state-owned oil companies, forcing them to shoulder a heavy financial burden.

What did the Minister say about mileage?

Hardeep Singh Puri acknowledged that ethanol blending might lead to a slight reduction in vehicle mileage in some cases, though there could be various other reasons for this as well. He stated that there is ample room in the market for both electric vehicles and biofuel-powered vehicles.

What is the government’s plan beyond E20?

The Minister clarified that India would proceed beyond E20 only after adequate testing and technical evaluations are completed. The government will not move forward without thorough preparation. According to the Ministry of Petroleum, E10 is widely used in the US, while the adoption of E15 is growing rapidly; millions of flex-fuel vehicles there also run on E85.

In Brazil, E27 blending has been made mandatory, and work is underway towards utilizing 100 percent ethanol. Canada, Thailand, Japan, and several European countries have also adopted higher ethanol blends. The Ministry states that India’s E20 program is a step taken in this same global direction.

Why is ethanol considered a better option?

According to the ministry, ethanol has an octane rating of approximately 108 RON, making it ideal for high-performance engines. It reduces engine knocking, boosts power, and improves cooling.

Steady Rise in Ethanol Production

India’s Ethanol Blended Petrol (EBP) program has been operational since the 2000s. The country’s ethanol production capacity has surged from 38 crore liters per annum in 2013-14 to 2,000 crore liters per annum today. The ethanol blending level has also risen from 1.5 percent to reach 20 percent by December 2025.

Government Highlights Major Benefits

According to the Ministry of Petroleum, the ethanol blending program has yielded significant benefits since 2014-15. The initiative has resulted in foreign exchange savings exceeding ₹1.90 lakh crore. Farmers have received payments totaling over ₹1.60 lakh crore. Crude oil imports have been reduced by approximately 310 lakh metric tonnes, and a reduction of about 930 lakh metric tonnes in carbon dioxide (CO₂) emissions has been recorded. The Minister stated that the program plays a pivotal role in strengthening the nation’s energy security, boosting farmers’ incomes, and protecting the environment.

Heavy Burden on Oil Companies

Hardeep Singh Puri noted that the ongoing conflict in the Middle East has driven up crude oil prices, placing immense financial pressure on state-run oil companies. By June 30, these companies incurred losses amounting to ₹74,781 crore due to selling petrol, diesel, and LPG below cost. He stated that the total under-recovery on these fuels reached ₹1.88 lakh crore during the April-June 2026 quarter.

Will Prices Drop?

Regarding the possibility of a reduction in retail fuel prices, the Minister remarked that it would be premature to comment on the matter at this stage. He said that if crude oil prices in the international market remain low for the next two to three months, the government will consider the situation further.