EconomyGS3

Questions Raised Over India's E20 Ethanol Blending Push

The Hindu·2026-10-20· Read original

"Questions Raised Over India's E20 Ethanol Blending Push"

Prelims Facts

  • •The E20 blend is 80% petrol and 20% ethanol. Public OMCs began selling it from February 6, 2023.
  • •The Road Transport and Highways Minister told Parliament that E20 reduces fuel mileage by 2% to 6%. He cited a joint ARAI-SIAM-IOCL study.
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Key Terms

E20 blend

petrol mixed with 20% ethanol (anhydrous ethanol) and 80% motor gasoline

National Policy on Biofuels

2018 policy setting India's ethanol blending targets and approved feedstocks

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Study Note

BackgroundCore Concept

Background

India imports a very large share of its crude oil. Every government has looked for ways to reduce this dependence. One answer is to mix ethanol, a fuel made from crops, into petrol. The National Policy on Biofuels, 2018 set a blending target. Later, it advanced the 20% ethanol blending target to 2025, moving it up from an earlier 2030 goal. The policy also listed which raw materials could be used to make ethanol. These include cassava, damaged wheat grains, rotten potatoes and sugar beet. Items like groundnut seeds and horse gram were not approved. In practice, India's ethanol programme relies mainly on just two crops: sugarcane and maize. This is different from the wider approved list. The reason is that these two crops already had large, well-organised supply chains. These chains were linked to sugar mills and grain markets.

Public sector oil marketing companies began selling the E20 blend from February 6, 2023. The E20 blend is petrol mixed with 20% ethanol. They sold it at select outlets. The push has been scaled up further this year because of rising crude prices. These price rises are linked to tensions over the Strait of Hormuz, a key route for global oil shipments. The government has defended E20 on three grounds. First, it saves money for consumers. Second, it cuts carbon emissions. Third, it saves foreign exchange by replacing imported crude with home-grown ethanol.

The Topic Explained

A litre of petrol with a lower energy content delivers less distance per litre. This is because ethanol releases less energy when burnt than pure petrol. This is the central problem with the three claims made for E20. The Road Transport and Highways Minister told Parliament about a joint study. The study was by the ARAI, SIAM and IOCL, which are vehicle and fuel research bodies. According to the study, E20 reduces fuel economy by 2% to 6%, depending on the vehicle's age and type. Older vehicles not designed for higher ethanol content lose more mileage. Some users also report engine and fuel-tank damage, though this is harder to measure precisely.

On cost, if a car needs more litres to cover the same distance, the saving from cheaper ethanol can be wiped out or reversed. …

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Related PYQs

2020GS1 Prelims

According to India's National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels?

1.Cassava

2.Damaged wheat grains

3.Groundnut seeds

4.Horse gram

5.Rotten potatoes

6.Sugar beet

Select the correct answer using the code given below:

A1, 2, 5 and 6 only
B1, 3, 4 and 6 only
C2, 3, 4 and 5 only
D1, 2, 3, 4, 5 and 6
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Practice MCQs

Economymedium

Under India's National Policy on Biofuels, which of the following is NOT an approved raw material for biofuel production?

ACassava
BDamaged wheat grains
CGroundnut seeds
DSugar beet
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Economymedium

Consider the following statements on the forex (foreign exchange) impact of ethanol blending in India:

1.Substituting ethanol for crude oil directly reduces India's oil import bill.

2.Diverting sugarcane and maize toward ethanol has had no effect on India's export earnings from these crops.

3.The government has banned sugar exports in recent years partly due to rising domestic demand linked to ethanol diversion.

Which of the statements given above is/are correct?

A1 only
B1 and 3 only
C2 and 3 only
D1, 2 and 3
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Economymedium

Consider the following statements regarding India's E20 petrol blend:

1.E20 consists of 80% motor gasoline and 20% anhydrous ethanol.

2.Public sector oil marketing companies began selling E20 at select outlets from a date in early 2023.

3.The Road Transport and Highways Minister has stated that E20 reduces fuel mileage by 2% to 6% depending on vehicle category and vintage.

Which of the statements given above is/are correct?

A1 only
B1 and 2 only
C2 and 3 only
D1, 2 and 3
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Economyhard

With reference to the emission impact of a higher ethanol blend like E20, consider the following statements:

1.A litre of ethanol embodies less carbon than a litre of pure petrol.

2.A loss in vehicle mileage means more fuel must be burnt to cover the same distance.

3.According to a government-cited mileage-loss range, overall emissions can rise rather than fall once the mileage loss crosses roughly 4%.

Which of the statements given above are correct?

A1 and 2 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
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Economyeasy

Which pair of crops together form the primary feedstock basis for ethanol production in India's blending programme?

ARice and soybean
BSugarcane and maize
CWheat and mustard
DCotton and groundnut
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