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POLITICS · JUL 10, 2026

India Defends E20 Petrol Rollout Amid Mileage Concerns

The Ministry of Petroleum and Natural Gas defended the E20 fuel mandate, citing energy security and foreign exchange savings despite admitting a slight drop in fuel economy.

The Ministry of Petroleum and Natural Gas defended India's transition to E20 ethanol-blended petrol, which became the default grade on April 1, 2026. Addressing public and political backlash, the ministry admitted that E20 can reduce fuel economy by 3% to 5%, but argued this is outweighed by cleaner engine operation, lower emissions, and enhanced energy security. The government rejected demands to offer consumers a choice between pure petrol, E10, and E20, stating that managing multiple grades across 100,000 retail outlets would be logistically impractical.

To counter claims that the fuel damages engines, the ministry cited data from Maruti Suzuki and Hero MotoCorp, noting no evidence of corrosion or abnormal wear across millions of serviced vehicles. Petroleum Minister Hardeep Singh Puri dismissed engine damage reports as a "misinterpretation" and announced plans to introduce E85 fuel for compatible vehicles to further reduce fossil fuel reliance. He also clarified that E25 petrol remains under evaluation with no commercial rollout decision yet.

On pricing, the ministry explained that E20 is currently more expensive to produce than pure petrol when global crude is around $70 per barrel, though the economics reverse if crude reaches $120-130 per barrel. The government emphasized that the program's primary goals are reducing crude imports and supporting farmers. Since 2014-15, the initiative has saved over Rs 1.97 lakh crore in foreign exchange and displaced approximately 316 lakh metric tonnes of crude oil.


Reported across 22 outlets
Actors
Hardeep Singh PuriBrij LalMaruti SuzukiHero MotoCorp

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