Ethanol blending beyond 20% not on cards yet, says government in Parliament
The government has not yet decided to increase ethanol blending in petrol beyond the current 20% level, Minister of State for Petroleum and Natural Gas Suresh Gopi informed the Rajya Sabha on Monday. In a written reply, Mr. Gopi stated that any future increase would only occur after detailed scientific and technical studies, along with consultations with all relevant stakeholders, including automobile manufacturers, oil marketing companies, and research institutions.
India achieved the 20% ethanol blending target five years ahead of schedule. Average blending rose from about 1.53% in 2013-14 to 20% in the 2025-26 supply year, following a phased rollout over two decades. Since 2014-15, the programme has saved over Rs 1.97 trillion in foreign exchange, displaced nearly 316 lakh tonnes of crude oil, avoided about 952 lakh tonnes of carbon dioxide emissions, and generated more than Rs 1.66 lakh crore in additional farmer income.
Regarding concerns about engine damage, Mr. Gopi said the government had not received any widespread or substantiated complaints from vehicle manufacturers, automobile associations, or consumer groups about engine failure, fuel-pump problems, corrosion, or water contamination linked to E20 fuel. Media and social media concerns were examined scientifically. Over 20 crore two-wheelers and 3 crore petrol cars, including many built before E20 certification, have run on E15-plus and E19-E20 fuel for extended periods without verified evidence of widespread engine failure. Data from a leading four-wheeler maker covering 2.84 crore vehicles in 2025-26, including 1.5 crore non-E20-certified vehicles, found no fuel-related damage. A leading two-wheeler maker reported similar findings.
Mr. Gopi noted that any mileage loss in older E10-designed vehicles is generally marginal, around 3-5%, while E20 offers higher octane and cleaner combustion. Manufacturers continue to honour warranties for vehicles using compliant E20 fuel.
On food security, the minister clarified that the 20% blending target has not reduced food crop availability, as only surplus grains—after meeting requirements for the Public Distribution System, National Food Security Act, and buffer stocks—are used for ethanol. Rice diverted for ethanol rose to 39.28 lakh tonnes in 2025-26 (until June 30) from 31.11 lakh tonnes in 2024-25, while maize diversion stood at 67.87 lakh tonnes, down from 131.18 lakh tonnes in 2024-25. Retail sugar and rice inflation have not been affected, with the programme described as a 'waste-to-wealth' approach.
Regarding water use, the government’s approach focuses on water sustainability. Feedstocks have been diversified beyond sugarcane to include maize, whose share in ethanol production rose to about 37% in 2025-26 from zero in 2021-22. Ethanol plants typically use 3-5 litres of processed water per litre of ethanol, and distilleries must operate as zero-liquid-discharge units.
State-run oil marketing companies procured 705.43 crore litres of ethanol worth Rs 49,577 crore in 2025-26 through June, following 1,033.31 crore litres worth Rs 73,996 crore in 2024-25. There are currently 501 registered ethanol suppliers. Mr. Gopi also clarified that there is no proposal to mandate lower-blend or non-blended petrol at select outlets, as running parallel supply chains would raise costs and dilute the programme’s environmental and farm-income benefits.
