Archive · 20 Jul 2026
India Undecided on Ethanol Blending Beyond 20%
The Indian government has not yet decided to increase the amount of ethanol mixed with petrol beyond the current 20%.
This decision is pending further studies and consultations with various stakeholders.
Ethanol blending has already brought significant benefits, such as saving foreign exchange, reducing crude oil dependency, lowering carbon emissions, and increasing farmer income.
There are concerns about the impact on older vehicles and food security, but the government assures that only surplus grains are used for ethanol production, ensuring food security and no impact on retail sugar and rice inflation.
India has not yet decided to raise ethanol blending in petrol beyond 20%.
Ethanol blending has saved over 1.97 trillion rupees in foreign exchange and displaced nearly 316 lakh tonnes of crude oil.
The government has not received widespread complaints about engine failure or vehicle breakdowns due to E20 fuel.
Only surplus grains are used for ethanol, ensuring food security and no impact on retail sugar and rice inflation.
The decision is pending detailed scientific and technical studies and consultations with stakeholders.
- Who
- Minister of State for Petroleum and Natural Gas Suresh Gopi
- What
- India has not yet decided to raise ethanol blending in petrol beyond 20%
- When
- The decision is pending detailed scientific and technical studies and consultations
- Where
- India
- Why
- To ensure the benefits of ethanol blending are maximized while addressing potential concerns
Pro-Ethanol Blending
Anti-Ethanol Blending
Environmental and Economic Benefits
Pro-Ethanol Blending
Ethanol blending has saved foreign exchange, reduced crude oil dependency, lowered carbon emissions, and increased farmer income.
Anti-Ethanol Blending
Concerns about potential environmental and economic risks, such as increased food prices and reduced food security.
Vehicle Compatibility
Pro-Ethanol Blending
No widespread evidence of engine failure or vehicle breakdowns due to E20 fuel, with manufacturers honoring warranties.
Anti-Ethanol Blending
Potential issues with older vehicles and concerns about mileage drop and engine performance.
Food Security
Pro-Ethanol Blending
Only surplus grains are used for ethanol, ensuring food security and no impact on retail sugar and rice inflation.
Anti-Ethanol Blending
Diversion of food crops for ethanol production could impact food security and prices.
- Current Ethanol Blending Level
- 20%
- Foreign Exchange Saved
- Over 1.97 trillion rupees since 2014-15
- Crude Oil Displaced
- Nearly 316 lakh tonnes
- Carbon Dioxide Emissions Avoided
- About 952 lakh tonnes
- Additional Farmer Income
- More than Rs 1.66 lakh crore
- Vehicles Running on E20 Fuel
- More than 20 crore two-wheelers and over 3 crore petrol cars
- Rice Diverted for Ethanol
- 39.28 lakh tonnes in 2025-26
- Maize Diverted for Ethanol
- 67.87 lakh tonnes in 2025-26