NEW DELHI: The government on Thursday defended its ethanol blending programme, saying extensive testing and large-scale field experience had found no evidence that E20 petrol causes abnormal engine wear, corrosion or reduced vehicle life, while arguing that the programme has strengthened India's energy security and helped cushion consumers from global oil price volatility.
In a written reply to a question in Lok Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said the Ethanol Blended Petrol (EBP) Programme had been implemented through a phased and scientifically validated process in consultation with NITI Aayog, automobile manufacturers, the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM), Oil Marketing Companies (OMCs) and other technical institutions.
The minister said extensive laboratory studies and field trials conducted by ARAI, SIAM, Indian Oil Corp (IOC), the Indian Institute of Petroleum and automobile manufacturers had confirmed that E20 fuel was safe for use under prescribed standards.
"These studies also established that legacy vehicles do not exhibit any significant variation in performance or abnormal wear and tear due to E20," he said, adding that laboratory studies, field validation and real-world operating experience had not established any widespread adverse impact on vehicle performance.
The government said E15+ petrol (15 per cent ethanol doped in petrol) had been in widespread use for more than three-and-a-half years and E19-E20 (19/20 per cent ethanol in petrol) fuel for more than two-and-a-half years, with over 20 crore two-wheelers and more than three crore petrol cars operating on these blends "without any verified evidence of widespread engine failure or vehicle breakdown attributable to ethanol blending."
Gopi said manufacturer service data also showed no abnormal corrosion, wear or reduction in vehicle life due to E20 fuel, while manufacturers continued to honour warranty obligations for vehicles using the fuel.
The minister cited data from a leading automobile manufacturer, which serviced 2.84 crore vehicles during 2025-26, including about 1.5 crore vehicles that were not originally certified as E20-compatible, and reported no E20-linked corrosion, abnormal wear or reduction in component life.
A leading two-wheeler manufacturer had reported similar field experience, while another original equipment manufacturer found no evidence of ethanol-induced corrosion after tracking 1.4 crore E20-operated vehicles over an extended period, he said.
The government said E20 fuel offered higher octane, better anti-knock performance, improved combustion characteristics, smoother acceleration and lower emissions, contributing to cleaner and more efficient engine operation.
On pricing, the minister said public sector OMCs procured ethanol under a framework designed to ensure adequate supplies, provide remunerative prices to producers and support the agriculture sector, rather than maximise company profits.
The weighted average ex-mill price of ethanol for the 2025-26 ethanol supply year was Rs 66.61 per litre, while the estimated procurement cost, including GST and transportation, was about Rs 71 per litre for IOC, Hindustan Petroleum Corp and Bharat Petroleum Corp.
The government said petrol prices were market-determined and reflected international crude oil prices, exchange rates, freight, taxes, ethanol procurement costs and other operational expenses. It said public sector OMCs incurred an average under-recovery of about Rs 11 per litre on petrol between March and June 2026, amounting to around Rs 21,300 crore, as retail prices remained below market-determined levels.
The minister said India's dependence on crude oil imports made ethanol blending strategically important, particularly during the ongoing West Asian crisis.
"During the recent West Asian crisis, despite sharp increases in global crude prices, India was able to shield consumers through calibrated Government interventions, diversified sourcing and the increasing contribution of domestically produced biofuels," he said.
The government said that while global crude prices had risen by around 70-80 per cent since February 2026, domestic fuel prices had increased by only about 7-8 per cent. It added that when the Indian crude basket touched nearly USD 135 a barrel, petrol could have cost around Rs 125 per litre at market prices, but consumers continued to pay Rs 94.77 per litre in Delhi, helped by OMCs procuring ethanol at about Rs 70 per litre.
He said ethanol blending had reduced India's exposure to international crude oil price volatility and exchange-rate fluctuations, calling it "a strategic investment in energy security, price stability, farmer welfare and foreign exchange savings, rather than a revenue-generating exercise for OMCs."