CHENNAI: India’s ambitious transition to E20 petrol, which is a blend of 20% ethanol and 80% petrol, stands at a critical crossroads with consumer anxiety at an all-time high over drop in mileage and engine issues. A research study conducted by Ramesh Kumar D and Jagath AS at Sri Ramakrishna College of Arts and Science, Coimbatore, has exposed a significant ‘policy-reality gap’, which has put the country’s recent energy reform in a spot.
Based on responses from 50 vehicle owners in Coimbatore, the study found that while 82% of consumers were aware of the E20 policy and 34% have accepted it, 66% expressed dissatisfaction with many viewing the fuel as a ‘hidden tax’ on the middle-class.
The study’s most important finding is the breakdown of trust between policymakers and consumers. Only 12% of respondents said that they relied on official government channels for information about E20. And, a staggering 64% turn to local mechanics and social media for technical guidance.
Despite the government’s efforts to promote the environmental and economic benefits of ethanol blending, respondents of the study felt that they were navigating the transition with inadequate official support.
On a scale of 1 to 5, respondents rated their fear of long-term engine damage at 4.7 and possible mileage loss at 4.6. Many viewed E20 as a ‘hidden tax’ on the middle class with the study finding that consumers rated the economic burden at 4.5 on the same scale.
However, industry voices have pushed back against what they described as unnecessary panic. “What people don’t realise is that we’ve been using E19 fuel for the past five years and we’ve not encountered any issues. There are other countries that use E30 fuel and we export 80% of Bajaj vehicles to those countries. It is more of fear mongering and mental perception that E20 is causing damage to vehicles,” said S Rajavel, State chairperson, Federation of Automobile Dealers Association. “There are additives available in the market that would help prevent rust-related issues in vehicles. People should not leave cars unused with E20 fuel inside for several days to avoid fuel separation, which causes rusting.”
E20 may not be the best solution for those who own traditional internal combustion engine cars built by established automobile manufacturers or those cars that run on older software and hardware architectures. The study’s most significant finding has serious implications for social equity with a statistical test confirming a strong correlation between vehicle age and dissatisfaction, with owners of legacy vehicles being disproportionately affected.
Vehicle owners with BS-III and BS-IV models, manufactured before 2022, reported a 5-6% drop in mileage and a 28% increase in mechanical failures such as gasket wear and engine stalling. These issues act as an “efficiency tax”, the study said, impacting lower and middle-income groups who cannot afford to upgrade to newer, E20-compliant models.
Speaking about the issue, Karthik Shiv, owner of Carage Car Care, said that in the past one year many legacy vehicles have had a significant drop in mileage. “After the introduction of E20 fuel in the market, there has been a 25-30% drop in mileage in cars and two-wheelers. While we also see issues related to rubber spares and rusting, the mileage drop has turned out to be a predominant concern,” he added. “Owners of legacy vehicles are being forced to bear the financial and technical burden of the transition.”
Most passenger vehicles launched in India from 2023 onwards have been certified by manufacturers as E20-compatible. These incorporate ethanol-resistant fuel lines, upgraded rubber seals, corrosion-resistant metal components and recalibrated engine management systems.
In such vehicles, experts believe there is little evidence to suggest that E20 will significantly shorten engine life when the manufacturer-recommended maintenance schedule is followed. “The engine control unit (ECU) automatically adjusts fuel injection and ignition timing to compensate for ethanol’s different combustion characteristics, ensuring smooth operation,” explained K Rajkumar, an automobile technician who owns a garage in Coimbatore dedicated to vehicle remodelling.
He added that automobile manufacturers conducted extensive durability tests before certifying a vehicle for E20 compatibility, including corrosion testing, cold-start performance, emissions compliance and long-term engine endurance evaluations. “Those who own the newer E20-compatible vehicles have nothing to worry about, as the fuel is unlikely to reduce engine life or cause similar issues like in legacy cars,” he pointed out.
While modern engines are largely capable of handling E20, older vehicles that were designed for lower ethanol blends may experience gradual wear in the fuel system over several years.
“Fuel hoses and rubber seals are among the most vulnerable components. Ethanol can cause older rubber compounds to swell, soften or crack over time. This deterioration may eventually result in fuel leaks or reduced fuel pressure,” explained Shiv. “While currently there is no cause for concern, O-rings and seals used around fuel injectors and fuel pumps may degrade if they are not made from ethanol-resistant materials in the future.”
Although these issues generally develop gradually rather than suddenly, they could increase maintenance costs for owners of older vehicles. “Currently, the main issue is water formation. One of ethanol’s unique characteristics is its ability to absorb moisture from the atmosphere. This becomes a huge problem for vehicles that remain unused for extended periods,” explained the car enthusiast. “In older vehicles with steel fuel tanks, moisture absorbed by ethanol can cause petrol and ethanol to separate, which can cause internal corrosion.”
Beyond the technical debate, experts noted that E20 has significant economic implications as India imports more than 80% of its crude oil requirement.
According to the Ministry of Petroleum and Natural Gas, by replacing part of petrol consumption with domestically produced ethanol, the government expects to reduce foreign exchange outflow, strengthen energy security and reduce vulnerability to fluctuations in global oil prices. The ministry has stated that ethanol blending has saved over Rs 1.44 lakh crore in foreign exchange and reduced CO2 emissions by about 73.6 million metric tonnes. The policy has also created new demand for agricultural commodities such as maize, sugarcane and damaged food grains, providing an additional source of income for farmers and sugar mills.
However, consumer organisations have argued that while motorists experienced a 3-5% reduction in mileage, retail fuel prices have not fallen proportionately. “The idea behind ethanol blending was to mitigate the damage caused by fluctuating global oil prices, then ideally the price of E20 fuel should also be reduced accordingly. As of now, we’re paying the same price as regular petrol for E20 fuel, and also bearing higher running costs while experiencing a significant drop in mileage. So as of now the only one who is having any economic benefit owing to E20 is the government,” said M Sabarinathan, a member of the public who says he has noticed a 15% mileage drop in his car in the past few months.
While the government is fighting to win the trust of the consumer on ethanol blending, a new nightmare is already working its way through in the form of adulterated fuel. Several car manufacturers are in a fix after consumers filing lawsuits against complaints in their cars owing to ethanol blending.
However, independent studies done by automobile companies have revealed many instances when consumers were saddled with adulterated fuel – a main reason for engine-related issues that are being mistaken for problems caused by E20 fuel. In a recent interview with Autocar magazine, Mercedes-Benz India noted that problems caused by substandard fuel were being mistaken for E20 related issues.
The auto giant said that fuel adulteration has increased under the guise of E20 implementation, which has led to a lot of anxiety among consumers related to drop in mileage and engine performance.
The discontent in Coimbatore is not an isolated incident and several surveys reflect a broader, nationwide discontent against the government’s aggressive ethanol push.
A recent nationwide C-Voter survey found that 55% of respondents oppose E20, and a staggering 53% of even NDA voters are against it, citing concerns over reduced mileage (52.8%) and vehicle damage (54.2%).
In the similar vein, a LocalCircles survey of over 44,000 owners of pre-2023 vehicles found that 66% said that they were experiencing a 10% drop in mileage and 55% reported higher wear and tear or increased repair requirements since the fuel’s rollout.
These findings are in stark contrast to the government’s official line, which claims the fuel is safe and that the mileage drop is manageable at 1-6%. While the government points to economic benefits in foreign exchange and supporting farmers, consumers complained that a fuel that costs the same at the pump but delivers fewer kilometres.
The Coimbatore study cited several research papers that raised questions about the policy’s implementation. It may be noted that the Legal & Policy Research Division had called for an E20 Bill requiring fuel pumps to clearly display ethanol content and protect consumers from warranty and insurance claim denials.
The division’s research identifies major loopholes in the existing regulatory regime, noting that consumers were left at a disadvantage regarding engine failures and warranty clauses.
The study recommended that for the E20 mandate to succeed, it would require transparent labelling, technical assistance camps and possible price compensation to mitigate financial and technical risks for consumers. While owners of E20 compatible vehicles have no reason to fret, for owners of older vehicles, the picture was more complex.
“While E20 is unlikely to cause immediate engine failure, prolonged use may accelerate wear in fuel system components not designed to withstand higher ethanol content. Regular inspection of hoses, seals, fuel filters and pumps will become increasingly important,” opined Shiv.
The study concluded that the government must go beyond macro-economic rationales and address micro-level complaints of consumers. Apart from the concerns about E20 fuel, Mercedes-Benz India has called upon regulatory authorities and enforcement agencies to implement more rigorous quality inspections at the pump.
Such measures were essential to distinguish genuine instances of fuel contamination from misunderstandings that stem from ethanol blending. With the government considering even higher blends of ethanol to fuel in the future, it’s imperative to address these concerns at the grassroots level to put the anxieties of the end user to rest.
On a scale of 1 to 5, respondents rated their fear of long-term engine damage at 4.7 and possible mileage loss at 4.6. Many viewed E20 as a ‘hidden tax’ on the middle class
Vehicle owners with BS-III and BS-IV models, manufactured before 2022, reported a 5-6% drop in mileage and a 28% increase in mechanical failures such as gasket wear and engine stalling
A recent nationwide C-Voter survey found that 55% of respondents oppose E20, and 53% of even NDA voters are against it, citing concerns over reduced mileage (52.8%) and vehicle damage (54.2%)
Unlike conventional petrol, ethanol is an alcohol-based fuel produced from renewable agricultural feedstocks such as sugarcane, maize and damaged food grains.
Explaining the way E20 works, V Balaji, who is a part of Team-BHP, a community built for automobile enthusiasts, said that E20 burns cleaner than petrol and has a higher-octane rating, which helps improve combustion efficiency in engines specifically designed for it. “However, ethanol also contains less energy than petrol, which means that vehicles generally consume slightly more fuel to travel the same distance. This indicates that cars not optimised for E20 may experience a minimum reduction in fuel efficiency at least,” he explained.
For motorists, this translates into more frequent refuelling, even though the retail price of E20 petrol remains largely similar to conventional petrol. Consumer organisations argue that while motorists experience reduced mileage, retail fuel prices have not fallen proportionately, leaving vehicle owners to bear higher running costs while broader economic benefits accrue at the national level.
Ethanol can cause older rubber compounds used in fuel hoses and seals to swell, soften or crack over time. This deterioration may eventually result in fuel leaks or reduced fuel pressure. While currently there is no cause for concern, O-rings and seals used around fuel injectors and fuel pumps may degrade if they are not made from ethanol-resistant materials in the future, says Karthik Shiv, owner, Carage Car Care, Coimbatore
As of now, we’re paying the same price as regular petrol for E20 fuel, and also bearing higher running costs while experiencing a significant drop in mileage. So as of now the only one who is having any economic benefit owing to E20 is the government, says M Sabarinathan, a concerned denizen, who has noticed a 15% mileage drop in his car in the past few months
1. Widespread dissatisfaction – 66% 0f owners dissatisfied with E20 policy; only 34% accepted it, though 82% were aware of it
2. Breakdown of trust – Only 12% trust official government sources for E20 info, while 64% depend on local mechanics, social media
3. High consumer anxiety – On a scale of 1-5, fear of long-term engine damage scored 4.7, fear of mileage loss was 4.6, and economic burden at 4.5
4. Disproportionate impact on legacy vehicles – Owners of BS-III and BS-IV vehicles reported a 5-6% drop in mileage, 28% increase in mechanical failures
5. Inequitable ‘efficiency tax’ – Strong statistical correlation between vehicle age and dissatisfaction, disproportionately affecting lower and middle-income groups unable to upgrade to newer models
6. Policy-reality gap – A significant disconnect between government’s macroeconomic rationales and on-ground consumer complaints