E20 Fuel Usage Results in Minor Mileage Decline but National Benefits Outweigh Costs

Officials from the automotive and petroleum sectors, along with the Automotive Research Association of India (ARAI), have stated that using 20 per cent ethanol-blended petrol (E20) may slightly reduce fuel efficiency by 2-4 per cent. However, they emphasise that the benefits to the nation outweigh the extra costs for individual consumers. The Society of Indian Automobile Manufacturers (SIAM) also assured that vehicle warranties will be honoured without exception.

SIAM Executive Director PK Banerjee addressed concerns about reduced mileage, acknowledging a slight drop due to the fuel's nature. He highlighted the broader advantages for society, farmers, and the environment. Banerjee dismissed claims of a 20-50 per cent efficiency drop as misinformation. He explained that tests showed only a 2-4 per cent decrease in mileage, influenced by factors like driving habits and air conditioner use.

Impact on Vehicle Engines and Warranty Concerns

Banerjee responded to questions about E20's impact on non-compliant vehicle engines, stating that millions of vehicles have used E20 without any breakdowns. He reassured that warranty claims related to E20 usage are unfounded and that manufacturers will honour warranties unconditionally. ARAI Director Reji Mathai supported this by referencing studies from 2016 and 2021, which found no adverse effects from E20 fuel.

Mathai mentioned that these studies were submitted to authorities but remain confidential due to OEM data privacy. Despite this, he confirmed that vehicles have been accepting E20 fuel without issues. The Federation of Indian Petroleum Industry (FIPI) Advisor PS Ravi highlighted ethanol blending's role in boosting rural prosperity and reducing carbon emissions.

Economic and Environmental Benefits

Ravi noted that ethanol blending has reduced crude oil imports since 2014-15, saving Rs 1.44 lakh crore in foreign exchange. In 2025 alone, Rs 43,000 crore in forex savings is anticipated. Ethanol blending has also cut carbon dioxide emissions by 763 LMT and decreased India's reliance on crude imports, providing geopolitical leverage.

Toyota Kirloskar Motor's Vikram Gulati emphasised ethanol blending's broader economic impact. He explained that money previously spent on crude imports now supports farmers, enhancing their economic status and contributing to the economy. Gulati stressed that ethanol blending promotes sustainability without disrupting the economy or technology development.

The shift towards ethanol-blended fuels is seen as a step towards energy self-reliance and technological advancement. This transition supports India's goal of becoming a leader in sustainable fuels while providing a model for other developing nations to follow.

With inputs from PTI