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Automotive industry

India Pushes for Ethanol-Blended Fuel Amid Resistance from Petroleum Sector

Strategic Insights

— 1 min read

Nitin Gadkari, India's Union Minister for Road Transport and Highways, recently accused the petroleum sector of lobbying against the government's push for ethanol-blended fuel, citing vested interests and a "social media campaign" against the rollout of E20, a petrol-blended fuel with 20% ethanol. The E20 rollout, which began in select fuel stations in April 2023 and was expanded nationwide in April 2025, has triggered debate among consumers and automobile experts, with some arguing that blending ethanol could hurt vehicles' efficiency and longevity.

Key Takeaways:

  • Nitin Gadkari accused the petroleum sector of lobbying against the government's push for ethanol-blended fuel, citing vested interests and a "social media campaign" against the rollout of E20.
  • The rollout of E20, a petrol-blended fuel with 20% ethanol, began in select fuel stations in April 2023 and was expanded nationwide in April 2025.
  • Experts warn that cars running on E20 may see a 2-5% drop in mileage due to ethanol's lower calorific value compared to petrol.
  • The oil ministry has dismissed "drastic" efficiency loss claims, estimating a marginal decrease in mileage of 1-2% for four-wheelers designed for E10 and calibrated for E20.
  • Nitin Gadkari defended the ethanol programme as part of a broader strategy to reduce India's reliance on imported crude oil, which makes up 88% of the country's needs.
  • The programme aims to reduce emissions, save foreign exchange, and raise farmers' incomes by increasing demand for sugarcane and grain-based ethanol.
  • Gadkari emphasized the need to diversify India's fuel basket beyond ethanol, citing plans to concentrate on alternative fuels such as biofuel, hydrogen, and methanol.

Statistics:

  • 88%: The proportion of India's oil needs met by imported crude oil.
  • Rs.22 lakh crore: The value of India's annual oil imports.
  • 2-5%: The estimated drop in mileage for cars running on E20 compared to petrol.
  • 1-2%: The estimated decrease in mileage for four-wheelers designed for E10 and calibrated for E20, according to the oil ministry.
  • 3-6%: The estimated decrease in mileage for other four-wheelers, according to the oil ministry.

Sources:

  • Hindustan Times, "Nitin Gadkari accuses petrol lobby of stalling ethanol plan" (no date)
  • PTI, "Gadkari defends ethanol push, says it will cut India's reliance on imported oil" (no date)
  • Oil Ministry, "Ethanol: A marginal decrease in mileage" (August 4, X post)

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